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.
Pinnacle Financial Partners executives plan to issue $60 million in debt to help fund their planned acquisitions of CapitalMark Bank & Trust and Magna Bank and redeem their loan with US Bank. The notes, which were priced this morning in a combo fixed-variable setup, will mature in 10 years.
Corrections Corp. of America executives this week amended their main revolving debt facility, extending its maturity date by two and a half years to mid-2020 and lowering by 25 basis points the margin on its base rate and LIBOR rate loans, among other things. The amendment also boosts the company's "accordion" feature by $250 million to $350 million. CCA shares (Ticker: CXW) are up slightly this morning to $34.66. Year to date, they've slipped about 5 percent.
HCA Holdings' finance team has saved the company a few dollars by renegotiating two big loans with a group of lenders led by Bank of America. The Nashville-based hospital giant (Ticker: HCA) has replaced a $482 million term loan that would have expired next May and a $717 million facility due next February with a single $1.4 billion credit line that will mature in mid-2020. The new facility also comes with a lower interest rate.
Analysts at Moody's Investors Service have hiked their rating on the debt of Corrections Corp. of America by a notch, saying the company is well placed to fill empty beds at its prisons and steadily grow its network of facilities without having to do much to its balance sheet.
Upward rating movement will be predicated upon continued growth in gross assets – providing improved access to capital and consistent operating results. Continued demonstration of positive revenue growth, operating margin and earnings trends coupled with steady leverage and coverage ratios are also key drivers for positive rating momentum.
Ryman Hospitality Properties executives have extended the maturity date of their $700 million revolving credit facility by two years until June 2019. The move also cuts between 160 and 240 basis points off the interest rate and leaves Ryman with no debt coming due in the next four years. Check out the details here. Shares of the Nashville-based company (Ticker: RHP) are up slightly year to date.
The leaders of Pinnacle Financial Partners expect to issue $50 million in debt to help finance the acquisitions of CapitalMark Bank & Trust in Chattanooga and Magna Bank in Memphis as well as pay off its loan with U.S. Bank. That number is down from two weeks ago, when bank execs said they had started talks about issuing up to $60 million in subordinated debt.
Also of note from Pinnacle's latest filing: President and CEO Terry Turner first talked about a deal with CapitalMark boss Craig Holley way back in February of last year. But it took until early this year — starting with word that CapitalMark's 2014's profits would fall short of previous estimates — for the conversation to get down to terms and price. (Search for "February 10" to follow the timeline.)
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