Corrections Corp. launches $750 million revolver at Libor plus 150 bps

By Sara Rosenberg

New York, Dec. 6 - Corrections Corp. of America held a bank meeting on Tuesday afternoon to launch a proposed $750 million revolving credit facility that is talked with initial pricing of Libor plus 150 basis points, according to a market source.

Wells Fargo Securities LLC, Bank of America Merrill Lynch, J.P. Morgan Securities LLC and SunTrust Robinson Humphrey Inc. are the lead arrangers on the deal.

Proceeds, along with cash on hand, will be used to refinance existing bank debt, to fund a tender offer for $150 million of the company's $375 million 6¼% senior notes due 2013 and for general corporate purposes.

The tender offer will expire on Jan. 5.

Corrections Corp. of America is a Nashville, Tenn.-based owner and operator of partnership correction and detention facilities.

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