Corrections Corp. of America executives plan to raise nearly $250 million in seven-year debt and plan to use that money to retire almost half of the $563 million they have outstanding on their revolving credit line, which matures in mid-2020. No word yet on the interest CCA will pay on the new notes, but here's the prospectus and here's what Fitch Ratings has to say about CCA's plans. Nashville-based CCA (Ticker: CXW) has about $1.2 billion in total debt outstanding.
Corrections Corp. of America board member Thurgood Marshall Jr. last Friday unloaded more than 23,000 shares of the Nashville-based prison management company. The sales grossed Marshall, who has been a CCA director since 2002, more than $684,000 and slashed his stake in the company by more than half. Shares of CCA (Ticker: CXW) are down almost 20 percent so far this year.
Corrections Corop. of America board member and metals industry executive John Correnti was found dead at his home earlier this week. He was 68. In a filing with the Securities and Exchange Commission, CCA said Correnti — who had served on the prison management company's board since 2000 — will be greatly missed. There's no word yet on who will fill his board seat.
The board of directors of Corrections Corp. of America last week voted to revise its committee structure to focus more cleanly on risk assessment and risk management. Directors agreed to set up a new risk committee, carving its responsibilities out of the audit and risk committee. The new subgroup has as members Thurgood Marshall Jr. — who will chair the committee — as well as Donna Alvarado, Anne Mariucci and Charles Overby.
In a filing with the Securities and Exchange Commission, CCA said the new committee will help coordinate the prison management company’s risk assessment and risk management practices as well as its legal, regulatory and contract compliance.
“The Risk Committee will also review issues and trends facing the company that could impact the company’s business operations and public reputation,” according to the filing.
In part because of the nature of their business, CCA and its prison operator peers regularly have to handle sticky situations involving inmates’ living conditions and other issues. In May, Department of Justice officials said they would not press charges related to some Idaho employees falsifying staffing reports. More recently, the Tennessee Bureau of Investigation began looking into accusations that several Nashville-area CCA employees sold woodwork made by inmates.
Shares of CCA (Ticker: CXW) ended Tuesday trading at $31.68. So far this year, they’ve fallen about 13 percent.
Corrections Corp. of America Chief Development Officer Anthony Grande has joined the ranks of local executives posting big insider sales. The 45-year-old executive, who has been with Nashville-based CCA since 2003, this week twice unloaded 10,000 shares for more than $650,000. The moves trimmed Grande's CCA holdings by about 18 percent.
Prison health care provider Corizon has hired Chris Bell to lead its business development efforts across the Southeast. Bell, who worked with Corizon from 2007 to 2009, had been with Birmingham-based competitor NaphCare. He fills a role previously held by Martha Harbin, who has been named Corizon's first director of external relations. Get more info here.
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