Hilton Worldwide Holdings Inc Opens at $21.30, IPO at $20.00
Corrections Corp. Sells $675 Million of Debt to Finance Tender
Corrections Corp. of America, the largest private operator of prisons in the U.S., sold $675 million of senior notes in two parts to fund a tender offer for outstanding debt.
The company issued $325 million of 4.125 percent securities due April 2020 that pay 284 basis points more than similar- maturity Treasuries and $350 million of 4.625 percent bonds maturing in May 2023 at a spread of 270, according to data compiled by Bloomberg. Proceeds will be used to redeem its $465 million of 7.75 percent bonds due June 2017, or to fund payments linked to its conversion into a real estate investment trust, Nashville, Tennessee-based CCA said today in a filing.
CCA is also seeking to boost its revolving credit facility to $900 million, as well as to get consent from bondholders to amend rules governing the debt that “would eliminate substantially all of the restrictive covenants and certain events of default provisions in the indenture,” according to the filing.
The 2017 notes, rated Ba1 by Moody’s Investors Service, traded March 14 at 105.1 cents on the dollar to yield 6.34 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The bonds are callable in June at 103.88 cents.
To contact the editor responsible for this story: Alan Goldstein at email@example.com