CoreCivic to Redeem $675M Senior Notes Early

By Tamara Parker • Saturday, March 16 10:18 • Permanent Link

CoreCivic, Inc. (NYSE: CXW) has announced its decision to redeem in full the $675,000,000 original aggregate principal amount of 8.250% senior unsecured notes due 2026. The redemption date is set for April 15, 2024, two years earlier than the scheduled maturity date of April 15, 2026. The redemption price is equal to 104.125% of the principal amount of the outstanding 2026 notes, in addition to accrued and unpaid interest on such notes up to, but not including, the redemption date. As of March 15, 2024, the principal amount of the outstanding 2026 notes was $98,774,000.

CoreCivic intends to utilize a combination of cash on hand and available capacity under its revolving credit facility to fund the redemption price. The company's decision to redeem these notes could have various implications on its financial position and future funding strategies.

CoreCivic, a diversified government-solutions company, provides corrections and detention management services, residential and non-residential alternatives to incarceration, and government real estate solutions. As of the redemption date, the company will have been a flexible and dependable partner for government for 40 years. Their employees are driven by a deep sense of service, high standards of professionalism, and a responsibility to help improve the public good.

This decision to redeem the 2026 notes marks a significant financial move for CoreCivic, and it will be interesting to see how this development impacts the company's financial position in the upcoming period. Check out the company's full 8-K submission here.

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