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Corrections Corporation of America Message Board

  • flipper_58 flipper_58 Dec 27, 1999 2:25 PM Flag

    The existing preferred

    I assume would be merged into the new, new CCA
    and the dividend would remain the same. This is not a
    bankruptcy situation where the new investors can reschedule
    the dividend, they must honor the dividend of
    course...unless they want to call it which is highly doubtful as
    the yield from the call price I believe is 8% from

    The down side I feel is the new preferred most likely
    will be senior to the existing preferred. $350mm more
    at 12% out of cash flow isn't exactly

    This is a overly highly dilutive deal and greatly
    favors Blackstone, IMO. They absolutely gave away the
    store for $350mm. If I had the money I'd do their deal
    in a second.

    I think it should of been a
    rights deal right from the beginning with a Blackstone
    of sorts as a standby. This $75mm portion is a
    accommodation to an overall screwing.

    screwing...part II Next

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    • and you're right...tried to remember off the top
      of my head and was confused with something else I
      sold..I sold for 12 in July....however that is still
      better than 5 1/4...and even at 12 I was glad to be off
      the spiral before it went any lower. DOC would
      certainly be the last person I would ever want to do
      business with again!

    • if you are right and this is driven into the teens before May, I will buy you dinner, and I will be more than HAPPY to do it!

    • they're smart to hold off on the conference call
      until january when everyone is finished selling for tax
      purposes, de-reiting, stopping the dividend,then when then
      the details are explained,the stock gains momemtum
      and doesn't have to fight the stock being dumped for
      the wrong reasons...then as a previous post
      mentioned, the 4 million shares shorted drive the stock back
      to the teens...

    • If you sold off at 19 early last summer, I'd like to know who you sold to -- Doc maybe? The CC was in May, and the stock was under 15 before the end of the month. Summer doesn't begin until June.

    • breakfast, I'm in for more.

    • <EOM>

    • Maybe pretty soon the term " planned failure "
      will sink in ! ! ! ! This is my final 'gloat' I talked about.... Now get that blood cleaned up out of the streets!!!!!!

    • While I respect your opinions always, I do not
      believe that PZN qualifies as a good buy at this level.
      Why? I think about 40 cents(assumed dilution) is the
      max they can earn in 2000.With all the uncertainties
      that remain, I expect PZN to fall to a P/E of 10 or

    • These convertibles can be the kiss of death. There was a good discussion of these convertibles in the OE board some weeks ago and how they work to destroy a company. I hope that is not the case here.

    • Joe, the framework for this deal was done in late
      November. Why wait to announce til now you ask? Remember,
      Doc doesn't care about the price as he's only
      concerned with his consulting package. A lower price is
      better for Blackstone obviously so they'd push for
      delaying the announcement.

      What else did the
      party's gain by delaying until the last week of the year?
      Well, does nobody else find it suspicious that
      throughout the decline from 22 to 9 there were no
      significant short sellers but strangly in November someone
      sees a great opportunity to ride it down from $9. I
      wonder if anyone was tipped off? Also, by pushing the
      process so late in the year, it forces people to strongly
      consider taking the tax loss sale option. I did. What does
      that do for Blackstone? Turns the shareholder base
      over. What does that do? Well, who's more likely to
      vote for this merger, RP or TNBanker? RP can't buy in
      for 30 days and today's new shareholders have a cost
      basis of $5.

      This whole deal makes CRRR's look

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26.04+0.13(+0.50%)Nov 27 1:02 PMEST