Corrections Corp. draws on revolver for Avalon Correctional purchase

By Tali Rackner

Norfolk, Va., Oct. 29 – Corrections Corp. of America used borrowings from its revolving credit facility to fund its acquisition of 100% of the stock of Avalon Correctional Services, Inc., along with a facility operated by Avalon, according to a press release.

The company also entered into an agreement to purchase an additional facility operated by Avalon that is expected to close later in the fourth quarter of 2015.

The aggregate purchase price for the transactions is $157.5 million.

Both companies are owners and operators of privatized correctional and detention facilities. Corrections Corp. based in Nashville and Avalon is based in Oklahoma City.

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