Corrections Corp. gets necessary consents to amend 7¾% senior notes

By Marisa Wong

Madison, Wis., April 4 - Corrections Corp. of America said it has accepted for purchase $315.4 million principal amount, or 67.8%, of its 7¾% senior notes due 2017 that were tendered by 5 p.m. ET on April 3, the consent payment deadline of its previously announced cash tender offer for any and all of the outstanding 7¾% notes.

Based on those tenders, the company received enough consents to execute a supplemental indenture effecting some proposed changes to the notes.

The company needed consents from holders of a majority in principal amount of the notes to eliminate substantially all of the restrictive covenants and events of default provisions in the notes indenture, according to a previous press release.

The total purchase price is $1,050 per $1,000 principal amount of notes tendered by the consent date. The total payment includes a $30 consent payment.

Holders who tender their notes after the consent deadline will receive $1,020 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

The offer will run until 11:59 p.m. ET on April 17.

The company announced on Thursday that it is redeeming all of its 7¾% notes that remain outstanding after the expiration time on June 1 at a price of 103.875 plus accrued interest.

In addition to receiving consents from a required majority, the offer is subject to a financing condition, the prior release noted.

BofA Merrill Lynch (888 292-0070 or collect 980 387-3907), JPMorgan, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities and PNC Capital Markets LLC are the dealer managers and solicitation agents. D.F. King & Co., Inc. (800 488-8095) is the information agent and tender agent.

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

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