20 mins - disclaimer
11, 9:16 am Eastern Time
Alert: Warburg Cuts
Wackenhut Corrections Price Target to $15/Shr From $24
(This is a headline-only alert, although it will likely
be followed by an article soon)
Boy it seems these guys have really perfected the
art of buy high, sell low. They buy PZN in the $10
range and then quickly sell out down in the $5 range. I
also read where they bought a big stake in Caribiner
(CWC; a real dog) and then recently dumped for a huge
loss. If anybody sees them making any more investments,
please alert the board so we can go the other way.
Although with a few more investments like these and they
won't be in business anymore.
I've written a few posts on this matter already
but I am happy to go over it again. PZN has already
borrowed approx. $900 million on an EXISTING $1 Bln credit
line. The NEW $1.2 BLN credit line will replace the
EXISTING credit line but is conditioned upon
Blackstone/Fortress investing the $350MM into PZN. The NEW line is
larger because PZN needs a little more flexibility and
because we are now bringing OpCo (and their financing
needs) into the mix. PZN probably could not have gone
another quarter without exceeding their credit limits and
certainly could not have afforded to pay any more
dividends. The Company has a chance to rebound once it
clears up its occupancy issues but at this point the
Company's financials are in far worse condition than I
originally thought as evidenced by the two notch credit
downgrade by Moody's this week.
Please respond about the $1B credit facility.
Earlier you said they had already used 900MM of it. I
asked you to verify as I believe it has not been
I'm not trying to put you on the spot, just
that it is very important information. Please confirm
Fir Tree has sold its last shares.
Fir Tree started selling shares one day after filing
13D with SEC on 12/6. Sold 3,230,000 shares for $5 on
12/27. Sold 3,832,667 shares for $8.9065 on 12/29.
(Wonder who bought them. Wonder if they would like to buy
a few more.)
Don't mean to be a wiseguy but I suggest you look
at the 10-K and 10-Q. PZN has over $1 Bln in debt as
of 9/30/99. This does not include OpCo's debt which
is probably another $50-75 million. When analyzing
PZN you must also assess OpCo because OpCo is the
primary tenant on PZN's prisons. If OpCo does not have
the financial ability to pay rent to PZN then PZN
will in turn be unable to service its own debt. BTW,
debt to equity is a rather meaningless ratio. Look at
Debt/EBITDA as a better measure of PZN's financial strength
(or lack thereof).
I agree with you. The financial statements show
$0.39 earnings last quarter and a debt to equity of
less than 1. Since we apparently are not a REIT right
now, we should have no problem paying back some debt.
Someone please show me where the debt is.
merger is a simple case of why make millions when you
can make billions.
Where did you find the information regarding the
use of $900MM of the $1Billion credit line.
your sources reliable?
I thought at the CC or press
release they stated the $1B was being increased to $1.2B
and indicated the full amount was still available.
One of the things that bothers me most about the
proposed deal is that CC is to be paid their purchase
price for their shares of PZN. How many of us can get a
deal like that. It appears blatantly unfair to me and
wish I could say it was illegal.
Corrections Corporation of Australia Contracts
With Western Australia
Jan. 14 /PRNewswire/ -- Prison Realty Trust, Inc.
(NYSE: PZN) announced today that Corrections Corporation
of Australia has signed a contract with the State of
Western Australia to house 750 male inmates in a medium
security facility it is building in Wooroloo, Western
Australia. Opening is expected in the fourth quarter of
The contract provides for a take-or-pay
guarantee in the first year of approximately $11.2 million.
The guarantee escalates to $14 million in the second
year. The term of the contract is for five years and
provides for five three-year renewal options.
are pleased to expand our presence in Australia by
signing our third prison management contract there," said
Prison Realty Trust's Interim Chairman Tom Beasley." The
continued trend toward privatization both domestically and
internationally remains robust for CCA."
Corporation of Australia is an affiliate of one of the
privately-held service companies, which does business as
Corrections Corporation of America (CCA), of which Prison
Realty Trust Inc. has a 95% equity ownership interest.
CCA provides detention and corrections services for
governmental agencies. The company is the industry leader in
private sector corrections with more than 73,000 beds in
79 facilities under contract in the United States,
Puerto Rico, Australia and the United Kingdom. CCA's
full range of services includes finance, design,
construction, renovation and management of new or existing
jails and prisons, as well as long-distance inmate
Prison Realty's business is the
ownership of correctional and detention facilities. The
Company provides financing, design, construction and
renovation of new and existing jails and prisons that it
leases to both private and governmental managers. Prison
Realty currently owns or is in the process of developing
51 correctional and detention facilities in 17
states, the District of Columbia and the United Kingdom.
Prison Realty, which is based in Nashville, Tennessee,
has announced a restructuring which will, pending
shareholder approval, result in the combination of the
Company with the companies operating under the name
Corrections Corporation of America ("CCA'). The combined
company, which would operate under the Corrections
Corporation of America name, is expected to be a taxable
subchapter C corporation, as Prison Realty would terminate
its status as a REIT in connection with the
restructuring. Pending shareholder approval, Prison Realty
expects that upon the completion of the restructuring, it
will issue up to $350 million in convertible
securities to a group of investors.
release contains statements that are forward looking,
including statements relating to the amount and timing of
the proposed offering transactions. These statements
are not projections or assured results. Actual
results may differ materially from the results
anticipated in the forward looking statements due to a
variety of factors, including but not limited to,
changing market conditions. Additional factors will be
described in the company's filings with the SEC. The
company does not undertake an obligation to update its
forward-looking statements to reflect future events or
circumstances. Accordingly, individuals should not place undue
reliance on such statements.
SOURCE Prison Realty
CO: Prison Realty Trust, Inc.;
Corrections Corporation of Australia
11:10 EST http://www.prnewswire.com