CoreCivic Enters Into Amendment and Extension of Bank Credit Facility
12 October 2023 - 11:00PM
CoreCivic, Inc. (NYSE: CXW) ("CoreCivic")
announced today it entered into a Fourth Amended and Restated
Credit Agreement dated October 11, 2023, by and among CoreCivic, as
Borrower, certain lenders party thereto from time to time, and the
administrative agent for the lenders, or the New Bank Credit
Facility. The New Bank Credit Facility effectively replaces
CoreCivic's Third Amended and Restated Credit Agreement dated May
12, 2022. The New Bank Credit Facility is in the aggregate
principal amount of $400 million, consisting of a $125 million term
loan and a $275 million revolving credit facility.
The New Bank Credit Facility, among other things,
increases the available borrowings under the revolving credit
facility from $250 million to $275 million and increases the size
of the term loan from an initial balance of $100 million to $125
million, extends the maturity date to October 11, 2028 from May 12,
2026, and makes conforming changes to replace the Bloomberg
Short-Term Bank Yield Index, or BSBY, to the secured overnight
financing rate, or SOFR. Further, financial covenants were modified
to remove the $100 million limit of netting unrestricted cash and
cash equivalents when calculating the consolidated total leverage
ratio, the consolidated secured leverage ratio, and to increase the
consolidated total leverage ratio resulting in a "springing lien"
event from 4:00 to 1.00 to 4.25 to 1.00. At the closing of the New
Bank Credit Facility, CoreCivic received approximately $33.8
million of net borrowings before transaction costs as a result of
the increased size of the term loan, and the revolving credit
facility remains undrawn except for approximately $17.4 million in
outstanding letters of credit.
David M. Garfinkle, Executive Vice President and
Chief Financial Officer, stated, "We are very pleased with the
support from our new and existing financial partners enabling us to
further extend our overall debt maturity profile, maintain a
similar pricing structure, while providing us with greater
financial flexibility."
About CoreCivic
CoreCivic is a diversified, government-solutions company with
the scale and experience needed to solve tough government
challenges in flexible, cost-effective ways. We provide a broad
range of solutions to government partners that serve the public
good through high-quality corrections and detention management, a
network of residential and non-residential alternatives to
incarceration to help address America’s recidivism crisis, and
government real estate solutions. We are the nation’s largest owner
of partnership correctional, detention and residential reentry
facilities, and one of the largest prison operators in the United
States. We have been a flexible and dependable partner for
government for 40 years. Our employees are driven by a deep sense
of service, high standards of professionalism and a responsibility
to help government better the public good. Learn more at
www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and
expectations of the outcome of future events that are
"forward-looking" statements within the meaning of Section 21E of
the Securities Exchange Act of 1934, as amended, and the Private
Securities Litigation Reform Act of 1995, as amended. You can
identify these statements by the fact that they do not relate
strictly to historical or current facts. Examples of these
statements include, but are not limited to, statements regarding
CoreCivic's financial flexibility. These forward-looking statements
are subject to risks and uncertainties that could cause actual
results to differ materially from the statements made including,
but not limited to, risks and uncertainties associated with
economic conditions affecting the corrections and detention
industry. Other factors that could cause operating and financial
results to differ are described in the filings we make from time to
time with the Securities and Exchange Commission.
Except as required by applicable law, CoreCivic does not
undertake any 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 or the information contained herein by any
third-parties, including, but not limited to, any wire or internet
services.
Contact |
Investors: David Garfinkle - Chief Financial Officer - (615)
263-3008 |
|
Financial Media: David Gutierrez, Dresner Corporate Services -
(312) 780-7204 |
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