HOUSTON, Oct. 11, 2007 (PRIME NEWSWIRE) -- Cornell Companies, Inc. (NYSE:CRN) announced today that it has amended its existing senior secured credit facility. The $100 million senior secured credit facility, which has a maturity of December 31, 2011, replaces the Company's existing $60 million senior credit facility, which had a maturity of June 24, 2008. In addition to being expandable to $150 million, the new facility favorably modifies certain loan covenants and allows the Company increased flexibility to manage its future growth opportunities.
J.P. Morgan Securities Inc. was lead arranger, and Bank of America was the syndication agent. Other banks participating in the syndicate include Comerica Bank, Wachovia Bank and Guaranty Bank. This facility will be available for general corporate purposes, and is primarily intended to fund the development of projects the Company has announced in 2007.
"As we have previously announced, we have a full slate of projects that is expected to drive additional growth into 2009 and beyond. With the recent completion of this phase of our financing activities, we believe we have the resources in place that provide us the flexibility to capitalize on these attractive opportunities. Additionally, Cornell has demonstrated ongoing access to capital markets and has continued to improve visibility with new investors," said James E. Hyman, Cornell's chairman, chief executive officer and president.
Statements regarding the credit facility, including without limitation the anticipated use of proceeds, the Company's future growth opportunities and projects, as well as any other statements that are not historical facts are forward-looking statements within the meaning of applicable securities laws that involve certain risks, uncertainties and assumptions. These include but are not limited to Cornell's ability to perform according to its current expectations, changes in supply and demand, actions by governmental agencies and other third parties, and other factors detailed in the company's most recent Form 10-K and other filings with the Securities and Exchange Commission, which are available free of charge on the SEC's website at http://www.sec.gov. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated.
About Cornell Companies
Cornell Companies, Inc. (www.cornellcompanies.com) is a leading private provider of corrections, treatment and educational services outsourced by federal, state and local governmental agencies. Cornell provides a diversified portfolio of services for adults and juveniles, including incarceration and detention, transition from incarceration, drug and alcohol treatment programs, behavioral rehabilitation and treatment, and grades 3-12 alternative education in an environment of dignity and respect, emphasizing community safety and rehabilitation in support of public policy. The Company has 75 facilities in 15 states and the District of Columbia with a total service capacity of 17,452.
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