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Corrections Corporation of America Message Board

  • ewocfo ewocfo Nov 15, 1999 10:02 AM Flag

    I had an idea

    Is there a way to declare the special in paper,
    have ML buy that paper for cash, and then have the
    cash distributed to the shareholders, while ML then
    resells the paper to its clients? Could this be the
    solution? Could it be this easy?

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    • The company is allowed to pay as much as $31 Mil
      of the special in cash regardless of whether in
      paper or no. So, lets say PZN declares the dividend in
      paper, and ML buys that paper for a $31 mil discount.
      PZN then pays the full special in cash and ML has
      some paper that has a little cushion in it.


      This way Doc gets that cash into his personal hands,
      and ML gets a big fee, a security at a discount, and
      then gets brokerage fees for the flip.

      • 2 Replies to ewocfo
      • You're trying to complicate a simple
        concept.

        PZN can't declare a dividend to it's shareholders and
        have anyone buy that dividend! If they are declaring a
        $1,000 bond per 10,000 shares as a dividend to me... How
        could ML or anyone else take my bond and give me $690
        cash for it. Your solution makes absolutely no sense.
        Sorry.

      • 25 million remaining to be paid of special.
        95
        % of taxable income for 2000. I thought that the
        taxable requirement would drop to 90%.
        per proposed
        legislation....
        "Breaking up the REIT structure now would create tax and
        other costs that make it an unattractive option for
        Prison Realty," Macdonald said.

        "Reading between
        the lines, there is good probability Prison Realty
        will de-REIT in 2000."

    • floating 12% bonds earlier this year.

 
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