SOURCE: Corrections Corporation of America

September 06, 2007 08:00 ET

Corrections Corporation of America Increases Borrowing Capacity of Its Revolving Credit Facility

NASHVILLE, TN--(Marketwire - September 6, 2007) - Corrections Corporation of America (NYSE: CXW) (the Company, "CCA") announced today that it has exercised its option to increase its borrowing capacity under its Revolving Credit Facility by $100.0 million, from $150.0 million to $250.0 million. CCA expects to utilize the additional borrowing capacity to fund future expansion and development projects.

The Revolving Credit Facility, which is scheduled to mature in February 2011, bears interest based on either a base rate plus a margin ranging from 0 to 50 basis points or at the London Interbank Offered Rate ("LIBOR") plus a margin ranging from 75 to 150 basis points. The applicable margin rates are subject to adjustment based on the Company's leverage ratio. Any amounts drawn under the Revolving Credit Facility, including the $100.0 million expansion, currently bear interest at a base rate or a LIBOR plus 75 basis points. The Company currently has no amounts drawn against the Revolving Credit Facility, but has $35.6 million of letters of credit outstanding under a sub-facility, reducing the borrowing capacity under the Revolving Credit Facility to $214.4 million. All other terms of the Revolving Credit Facility remain the same.

"We are pleased to have exercised our option to increase our Revolving Credit Facility as this additional borrowing capacity will provide us the flexible financing necessary to continue our growth and expansion efforts," said John Ferguson, President and Chief Executive Officer.

About the Company

Corrections Corporation of America is the nation's largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the United States, behind only the federal government and three states. We currently operate 65 facilities, including 41 company-owned facilities, with a total design capacity of approximately 75,000 beds in 19 states and the District of Columbia. We specialize in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies. In addition to providing the fundamental residential services relating to inmates, our facilities offer a variety of rehabilitation and educational programs, including basic education, religious services, life skills and employment training and substance abuse treatment. These services are intended to reduce recidivism and to prepare inmates for their successful re-entry into society upon their release. We also provide health care (including medical, dental and psychiatric services), food services and work and recreational programs.

Forward-Looking Statements

This press release contains statements as to the Company's beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) fluctuations in our operating results because of, among other things, changes in occupancy levels, competition, increases in cost of operations, fluctuations in interest rates and risks of operations; (ii) changes in the privatization of the corrections and detention industry, the public acceptance of our services, the timing of the opening of and demand for new prison facilities and the commencement of new management contracts; (iii) our ability to obtain and maintain correctional facility management contracts, including as a result of sufficient governmental appropriations and as a result of inmate disturbances; (iv) increases in costs to construct or expand correctional facilities that exceed original estimates, or the inability to complete such projects on schedule as a result of various factors, many of which are beyond our control, such as weather, labor conditions and material shortages, resulting in increased construction costs; and (v) general economic and market conditions. Other factors that could cause operating and financial results to differ are described in the filings made from time to time by the Company with the Securities and Exchange Commission.

We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release.

Contact Information

  • Contact:
    Karin Demler
    Investor Relations
    615-263-3005