Contact Information: Contact: Investors and Analysts: Karin Demler CCA (615) 263-3005 Financial Media: David Gutierrez Dresner Corporate Services (312) 780-7204
Corrections Corporation of America Prices Senior Notes and Increases Size of Offering to $465.0 Million
| Source: Corrections Corporation of America
NASHVILLE, TN--(Marketwire - May 19, 2009) - Corrections Corporation of America (NYSE : CXW )
(the "Company" or "CCA") today announced the pricing of its public offering
of 7 3/4% Senior Notes due 2017 (the "New Notes"). The New Notes will be
issued at a public offering price of 97.116%, resulting in a yield to
maturity of 8.25%. The size of the offering of the New Notes was increased
to $465.0 million aggregate principal amount of the New Notes from the
previously announced $300.0 million aggregate principal amount of the New
Notes. The closing of the sale of the New Notes, which is subject to
customary closing conditions, is expected to be on June 3, 2009. The
Company intends to use its net proceeds from the sale of the New Notes to
purchase, redeem or otherwise acquire the Company's outstanding 7 1/2%
Senior Notes due 2011.
The offering is being made pursuant to an effective automatic shelf
registration statement filed with the Securities and Exchange Commission on
May 19, 2009.
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
securities in any state in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities law of
any state. Copies of the applicable prospectus and prospectus supplement
relating to the offering may be obtained by contacting J.P. Morgan
Securities Inc., 270 Park Avenue, Floor 5, New York, New York 10017, or by
calling (212) 270-1477. An electronic copy of the prospectus supplement and
the accompanying prospectus will also be available on the website of the
Securities and Exchange Commission at http://www.sec.gov.
About CCA
CCA is the nation's largest owner and operator of privatized correctional
and detention facilities and one of the largest prison operators in the
United States, behind only the federal government and three states. We
currently operate 64 facilities, including 44 company-owned facilities,
with a total design capacity of approximately 86,000 beds in 19 states and
the District of Columbia. We specialize in owning, operating and managing
prisons and other correctional facilities and providing inmate residential
and prisoner transportation services for governmental agencies. In
addition to providing the fundamental residential services relating to
inmates, our facilities offer a variety of rehabilitation and educational
programs, including basic education, religious services, life skills and
employment training and substance abuse treatment. These services are
intended to reduce recidivism and to prepare inmates for their successful
re-entry into society upon their release. We also provide health care
(including medical, dental and psychiatric services), food services and
work and recreational programs.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations
of the outcome of future events that are forward-looking statements as
defined within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements are subject to risks and
uncertainties that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks and
uncertainties associated with: (i) general economic and market conditions,
including the impact governmental budgets can have on our per diem rates
and occupancy; (ii) fluctuations in our operating results because of, among
other things, changes in occupancy levels, competition, increases in cost
of operations, fluctuations in interest rates and risks of operations;
(iii) our ability to obtain and maintain correctional facility management
contracts, including as a result of sufficient governmental appropriations
and as a result of inmate disturbances, the timing of the opening of and
demand for new prison facilities and the commencement of new management
contracts; (iv) changes in the privatization of the corrections and
detention industry and the public acceptance of our services; (v) risks
associated with judicial challenges regarding the transfer of California
inmates to out of state private correctional facilities; (vi) increases in
costs to construct or expand correctional facilities that exceed original
estimates, or the inability to complete such projects on schedule as a
result of various factors, many of which are beyond our control, such as
weather, labor conditions and material shortages, resulting in increased
construction costs and (vii) the availability of debt and equity financing
on favorable terms. Other factors that could cause operating and financial
results to differ are described in the filings made from time to time by us
with the Securities and Exchange Commission.