BRENTWOOD, Tenn. – CoreCivic, Inc. (NYSE: NYSE:CXW), a diversified government solutions company, today announced its decision to redeem $675 million of 8.250% senior unsecured notes originally due in 2026. The redemption, set for April 15, 2024, will cover all outstanding notes, which as of today total approximately $98.77 million.
The notes will be redeemed at a price of 104.125% of the principal, plus accrued interest.
The company, which is the largest owner of partnership correctional, detention, and residential reentry facilities in the United States, plans to fund the redemption with cash on hand and available credit. This move comes before the notes' scheduled maturity date of April 15, 2026.
The redemption price reflects a premium over the principal amount, a common practice for early repayment of debt securities. CoreCivic's decision to redeem these notes may reflect its financial strategy to manage debt and reduce interest expenses.
Investors and stakeholders are advised that this press release does not constitute a notice of redemption. Further details, including the specific terms and conditions of the redemption, will be provided to the holders of the notes.
CoreCivic has been serving government partners for over four decades, offering a range of solutions including corrections and detention management, residential and non-residential alternatives to incarceration, and government real estate solutions. The company emphasizes its commitment to high-quality service and professional standards in its operations.
This announcement contains forward-looking statements regarding the redemption process and the funding of the redemption price. These statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
Investors are encouraged to consult CoreCivic's filings with the U.S. Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023, to understand these risks.
This news is based on a press release statement from CoreCivic, Inc.
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