Corrections Corp. of America seeks amendment to increase revolver, obtain term loan

By Sara Rosenberg

New York, July 24 - Corrections Corp. of America is seeking to amend its senior secured credit facility to increase its revolver to $125 million from $75 million and to obtain a $250 million term loan expiring March 31, 2008. Furthermore, the company plans to modify the facility to improve interest rate pricing and to give it greater flexibility under covenants to incur unsecured indebtedness and make capital expenditures and acquisitions.

The revolver will include a $75 million sub-facility for letters of credit, increased from $50 million, and will expire on March 31, 2006.

Security for the amended facility would be liens on a substantial portion of the company's tangible and intangible assets and pledges of all of the capital stock of the company's domestic subsidiaries.

The effectiveness of the amendments is subject to requisite consent of the lenders and prepayment of approximately $265 million under the existing term loan.

There is currently $515.3 million principal amount of loans outstanding under the credit facility.

Corrections Corp. is a Nashville, Tenn. owner, operator and manager of prisons and other correctional facilities, and provider of inmate residential and prisoner transportation services.

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