CoreCivic upsizes senior notes offering to $500 million
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BRENTWOOD, Tenn. – CoreCivic, Inc. (NYSE:CXW), a diversified government solutions company, announced the successful upsize and pricing of its senior notes offering. Initially set at $450 million, the offering has been increased to $500 million in aggregate principal amount of 8.25% senior notes due 2029.
The proceeds from the sale, expected to net approximately $490.3 million after underwriting discounts and offering expenses, are earmarked for a cash tender offer for the outstanding 2026 Notes and potential redemption thereafter. The 2026 Notes currently have an outstanding aggregate principal amount of $593.1 million.
CoreCivic plans to utilize the net proceeds in conjunction with other available funds, including borrowings under its revolving credit facility and available cash, to manage the tender offer and any subsequent redemption of the 2026 Notes. This includes covering premiums, accrued interest, and related costs.
The offering of these senior unsecured obligations is guaranteed by CoreCivic’s subsidiaries that also back its existing senior secured credit facilities and other senior unsecured notes. Citizens JMP Securities, LLC is leading the underwriting team, with StoneX Financial Inc., FHN Financial Securities Corp., Wedbush Securities Inc., and TCBI Securities, Inc. serving as joint bookrunners and co-managers, respectively.
This financial move is being conducted under CoreCivic’s shelf registration statement on Form S-3, effective as of March 4, 2024, with the SEC. The final prospectus supplement, along with the accompanying prospectus detailing the offering terms, will be filed with the SEC and accessible via their website.
It is important to note that the completion of the notes offering and the tender offer is not guaranteed. The company has stated that the notes and the 2026 Notes are not being offered or sold in any state or jurisdiction where such action would be considered unlawful.
CoreCivic, known for being the nation’s largest owner of partnership correctional, detention, and residential reentry facilities, emphasizes its commitment to solving government challenges through a variety of services, including corrections and detention management.
