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BofA Agents CCA’s Credit Facility Amendment

March 26, 2013, 07:25 AM
Filed Under: Specialty Industries

CCA or Corrections Corporation of America announced it entered into an amendment of its Amended and Restated Credit Agreement. An 8-K filing with the SEC indicates that Bank of America is serving as the administrative agent on the amendment. The amendment, among other things, increases the aggregate principal amount of the revolving commitments to $900 million and includes an "accordion" feature that provides for uncommitted incremental extensions of credit in the form of increases in the revolving commitments or incremental term loans in an aggregate principal amount up to $100 million, as requested by the company.

The amendment also provides for, among other things, an extension of the maturity date from December 2016 to December 2017, modification of certain financial covenants and modification of the negative covenant regarding distributions to accommodate the Company's status as a REIT. Interest rate and fee margins remain unchanged.

CCA is the nation's largest owner of partnership correction 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 67 facilities, including 51 facilities that we own or control, with a total design capacity of approximately 92,500 beds in 20 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential 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.

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