New Issue: Wackenhut Corrections sells $150 million 10-year notes to yield 8 ¼%

By Paul A. Harris

St. Louis, July 1 - Wackenhut Corrections Corp. priced an offering of $150 million of senior notes due July 15, 2013 (B1/B) at par, Tuesday, to yield 8 ¼%, according to market sources.

Price talk was 8 1/4-8 ½%.

BNP Paribas and Lehman Brothers were joint bookrunners on the Rule 144A/Regulation S deal.

Proceeds will be used to help fund the repurchase of 12 million shares of common stock from Group 4 Falck A/S and to refinance the existing credit facility.

The issuer is a Boca Raton, Fla.-based privatized correctional management services provider.

Issuer:	Wackenhut Corrections Corp.
Amount:	$150 million
Maturity:	July 15, 2013
Security description:	Senior notes
Bookrunners:	BNP Paribas, Lehman Brothers (joint)
Coupon:	8¼%
Price:	Par
Yield:	8¼%
Spread:	472 basis points
Call features:	Callable on July 15, 2008 at 104.125, 101.375, par on July 15, 2011 and thereafter
Equity clawback:	Until July 15, 2006 for 35% at 108.25
Settlement date:	July 9, 2003
Ratings:	Moody's: B1
	Standard & Poor's: B
Price talk:	8 ¼%-8 ½%

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