Corrections Corp. of America to reduce term debt; seeking amendment on cap ex allowance

By Sara Rosenberg

New York, April 2 - Corrections Corp. of America plans to use $25 million of cash on hand and expected proceeds of about $32 million from a tax refund to reduce outstanding debt under its term loan.

Furthermore, the company is seeking an amendment to its credit facility to obtain additional flexibility on limitations for capital expenditures.

"The company is seeking this amendment in order to take advantage of potential opportunities to expand existing facilities or to develop new facilities at favorable rates of return that might arise in the future," a news release said.

The debt reduction is expected to take place in the second quarter of 2003.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.