Corrections Corp. of America obtains commitment for $695 million credit facility via Lehman

By Sara Rosenberg

New York, April 9 - Corrections Corp. of America announced Tuesday it has obtained a commitment for a new $695 million senior secured credit facility. Lehman Brothers is the sole lead arranger, exclusive advisor and sole book running manager for the new loan, according to a company press release. Lehman Commercial Paper Inc. is the administrative agent.

Proceeds from the bank loan will be combined with the proceeds of a proposed $150 million senior note offering to refinance the company's existing credit facility, which currently has $789.7 million in outstanding borrowings and matures on Dec. 31, 2002, the release said.

The refinancing of the credit facility and the note sale are expected to be completed by May 15, according to the release.

Further details of the credit facility were not immediately available.

"We are pleased to announce the initiation of the refinancing of our existing senior bank credit facility," stated Irving E. Lingo, Jr., CCA's chief financial officer, in a news release. "We believe that the combination of pre-payable, shorter-term bank debt together with senior unsecured debt with a longer maturity enables us to continue to pursue our de-leveraging strategy while at the same time meaningfully extending our loan maturities."

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