CoreCivic to Redeem 8.250% Senior Notes Due 2026
CoreCivic, Inc. (CXW) announces the full redemption of $675 million 8.250% senior unsecured notes due 2026, with a redemption price of 104.125% of the principal amount. The redemption date is set for April 15, 2024, utilizing cash on hand and credit facility capacity for funding.
The announcement by CoreCivic to redeem its outstanding senior unsecured notes due 2026 ahead of maturity is a significant financial move. The decision to pay a premium of 104.125% on the principal amount reflects a strategic approach to manage the company's debt portfolio. This early redemption could indicate that the company is optimizing its capital structure, potentially taking advantage of lower interest rates or improving its debt-to-equity ratio. Investors should monitor how this redemption affects CoreCivic's financial leverage and interest expense savings, as these factors could influence future profitability and cash flow.
CoreCivic's choice to redeem its 2026 Notes using a mix of cash and credit facility resources suggests confidence in liquidity management. The redemption price, which includes a premium over the principal amount, also implies that the company is willing to incur immediate costs for long-term benefits. Credit analysts would assess the impact on the company's creditworthiness, considering that early debt retirement can lead to improved credit ratings. However, it's important to evaluate the terms of the revolving credit facility and the potential increase in short-term liabilities. The balance between liquidity and leverage is key for maintaining financial stability.
CoreCivic's redemption of its 2026 Notes can be viewed within the context of the broader corrections facility industry's financial strategies. The move might signal a change in the industry's approach to capital management, possibly driven by regulatory changes, shifts in market interest rates, or operational efficiencies. It's essential to compare this action with peers and industry trends to understand its implications fully. The company's ability to use available credit also reflects on its market position and perceived financial health, which could impact its competitiveness and attractiveness to investors.
03/15/2024 - 04:15 PM
BRENTWOOD, Tenn., March 15, 2024 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (“CoreCivic”) announced today that it is delivering an irrevocable notice to the holders of all of CoreCivic’s previously issued $675,000,000 original aggregate principal amount of 8.250% senior unsecured notes due 2026 (the “2026 Notes”) that CoreCivic has elected to redeem in full the 2026 Notes that remain outstanding on April 15, 2024 (the “Redemption Date”). The 2026 Notes were otherwise scheduled to mature on April 15, 2026. The 2026 Notes will be redeemed at a redemption price equal to 104.125% of the principal amount of the then outstanding 2026 Notes, plus accrued and unpaid interest on such 2026 Notes to, but not including, the Redemption Date (the “Redemption Price”). As of March 15, 2024, the principal amount of the outstanding 2024 Notes was $98,774,000. CoreCivic intends to use a combination of cash on hand and available capacity under its revolving credit facility to fund the Redemption Price.
This press release shall not constitute a notice of redemption of the 2026 Notes.
About CoreCivic
Cautionary Note Regarding Forward-Looking Statements This press release includes forward-looking statements including statements regarding CoreCivic’s redemption of the 2026 Notes and its funding of the Redemption Price. These forward-looking statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “plan,” “intend,” “believe,” “may,” “will,” “should,” “can have,” “likely,” and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. Such forward-looking statements may be affected by risks and uncertainties in CoreCivic’s business and market conditions. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Important factors that could cause actual results to differ are described in the filings made from time to time by CoreCivic with the U.S. Securities and Exchange Commission (the “SEC”) and include the risk factors described in CoreCivic’s Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on February 20, 2024. Except as required by applicable law, CoreCivic undertakes no obligation to update forward-looking statements made by it to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events.
Contact: Investors: Mike Grant - Managing Director, Investor Relations - (615) 263-6957 Financial Media: David Gutierrez, Dresner Corporate Services - (312) 780-7204
The ticker symbol of CoreCivic, Inc. is CXW.
CoreCivic is redeeming $675,000,000 original aggregate principal amount of 8.250% senior unsecured notes due 2026.
The redemption date for the 2026 Notes is April 15, 2024.
The redemption price is set at 104.125% of the principal amount of the then outstanding 2026 Notes, plus accrued and unpaid interest up to the Redemption Date.
CoreCivic intends to use a combination of cash on hand and available capacity under its revolving credit facility to fund the Redemption Price.
CXW Rankings
#983 Ranked by Stock Gains
CXW Stock Data
Industry
Facilities Support Services
Sector
Administrative and Support and Waste Management and Remediation Services
Tags
Facilities Support Services, Administrative and Support and Waste Management and Remediation Services, Finance, Real Estate Investment Trusts
Country
US
City
Brentwood
About CXW
corecivic a diversified government solutions company with the scale and experience needed to solve tough government challenges in 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, innovative and cost-saving government real estate solutions, and a growing network of residential reentry centers to help address america’s recidivism crisis. we are a publicly traded real estate investment trust (reit) and the nation’s largest owner of partnership correctional, detention and residential reentry facilities. the company has been a flexible and dependable partner for government for more than 30 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 http://www.corecivic.com/
