Moody’s rates CoreCivic loan Ba1

Moody's Investors Service said it assigned a Ba1 rating to CoreCivic, Inc.'s $1.25 billion senior secured credit facility consisting of a $800 million revolving credit facility due 2023, $200 million term loan A due 2023 and new $250 million term loan B due 2026.

Moody's also said it assigned a corporate family rating of Ba1 and speculative grade liquidity rating of SGL-2.

The agency also said it affirmed CoreCivic's existing senior unsecured rating at Ba1.

The outlook is stable.

The ratings reflect CoreCivic's strong credit metrics for its rating category and good liquidity profile, Moody’s said.

The proceeds from the proposed $250 million seven-year senior secured term loan B will be used to repay amounts outstanding under the REIT's existing $800 million senior secured revolving credit facility and for other general corporate purposes, the agency said.

The amount outstanding under the revolver totaled about $214 million as of March 31, 2019, Moody’s said.

Pro forma for the transaction, CoreCivic's revolver availability will be about $776.3 million, the agency said.

The SGL-2 speculative grade liquidity rating reflects the REIT's good liquidity profile, which is supported by access to an $800 million revolving line of credit, largely unencumbered asset base and effectively no secured debt, Moody’s said.

The stable outlook reflects a belief that CoreCivic will continue to prudently grow the number of beds it owns and operates while maintaining its solid credit profile, the agency said.

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