Corrections Corp. of America enters $450 million revolver

By Jennifer Chiou

New York, Dec. 21 - Corrections Corp. of America entered into a $450 million revolving credit facility, which effectively replaces its senior secured credit facility and includes the outstanding $34.9 million of letters of credit issued under the prior facility, according to an 8-K filed with the Securities and Exchange Commission.

Bank of America, NA was the administrative agent.

The five-year revolver has a $20 million sublimit for swingline loans and a $100 million sublimit for the issue of standby letters of credit.

The borrowings bear interest at Libor plus 75 basis points.

There is a 15 bps commitment fee on the difference between committed amounts and amounts other than swingline loans used under the new facility.

Covenants include a consolidated total leverage ratio of not more than 5:00 to 1:00, consolidated secured leverage ratio of not more than 2:50 to 1:00 and a minimum interest coverage ratio of not less than 2:25 to 1:00.

The loans are guaranteed by the capital stock of Corrections Corp.'s domestic subsidiaries and 65% of the stock of its first-tier foreign subsidiaries, accounts receivable and substantially all deposit accounts of the company and its domestic subsidiaries.

Corrections Corp. of America is a Nashville, Tenn.-based owner and operator of privatized correctional and detention facilities and a prison operator.

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