credit line revised for 6 more months with
provisions to rise $100mm by June and $200mm by Oct. or else
MORE increases in rates.
My guess is they will
have to another 20 for one reverse before this is all
over. IMO, a rights offering is going to be the only
realistic way to raise that money and not have all
shareholders get totally creamed by an outsider.
You're still here. I've been out of the country
for the last three months. Can you provide me w/ a
quick update on occupancies. Specifically, how are the
prisons in GA, Cal City, KY, and AZ doing? Do you have
that info? Any thoughts on the pref. A (coverage-is
there any?). I hope you didn't buy more in the 8s. I
tried to keep you away. How's our favorite band member?
Is he still visiting CCA facilties in KY! :) Hope
all is well.
Attempt 2 here..Yahoo lost first.
back. You might to look at trader0670's post 15975 as
he sumed up the lastest CC. EBITDA was $34mm with
the "I" being $35mm...coverage ratio zero.
don't own the pref A at this time (and did not average
down) as I'm waiting for a clearer signal. I have been
arbitraging the common and the pref B with good success, for
You advice was good, thank you. I
feel at this point a rights offering is critical after
their reverse split. The banks will continue to turn up
the heat until they do.
Management has also
indicated margins at the facilities as a whole are a
problems as costs have creeped up. If they earn 10%
margins with 10%+ interest costs, as NewMK says, they are
going no where.
what choice do they have? IMO, any rights
offering will have to have a sweetener (as in a
convertible preferred, or a bond with warrants, or
something). Otherwise, you could just play the common in the
marketplace. The saga continues.
since I am on the side line, and been for quite
some time now waiting for "THE" signal, I have some
time on my hands and have been thinking.
still see no way this POS can turn it around. One way
could be to sell properties but even so, I am not
certain. The common is going to be 25c by Dec 1 if not
below and the managment is not showing any genuis idea
that are badly needed in this case. I think all they
really know what to use is a butter knive. They would
hurt themselves by trying to handle a meat axe or they
dont have a meat axe.
I think that all the
fluff about, R-split, margins etc is now done and over.
The only thing left to save this POS lies in the
expertise of management. This one does not have it.
Therefore it should come from the outside. The problem is
any outsider deal is going to be so bad for any kind
of shareholders that it is not worst it. any
newcomers will be worst than vultures at this stage. I see
no PL anymore.
Buying anything now is
foolish. In fact, for the first time in my life i may get
short (although I just hate the concept) after the
R-split. One could make quite a few bucks there from a
1-20 r-split. Appears the only way to make money with
this POS and heck why not get my losses back... I may
also short on any common spike over $1 if Bush wins.
Garanteeed return. After all, this POS is now an excellent
way for inexperienced shorts to make money at low
The sideline idea is a very wise one for now. I saw
that you have sold your positions and got short. At
least someone is making out.
Disclaimer: I have
no shares short, long or pdf whatever. Just watching
a supernova exploding.
I bought in on the assumption that the
price is depressed because of unreasonable fear. But
the only risk worth taking is the Pfd A
The Pfd A has a $25 face value with a 8% dividend or
$2 per share.
Buying in at $3 3/4 was too
good to miss.
After tax loss selling lifts, the Pfd
A will recover.
NASHVILLE, Tenn.--(BUSINESS WIRE)--Nov. 21,
2000--Corrections Corporation of America (formerly Prison Realty
Trust, Inc.) (NYSE:CXW - news; the ``Company'')
announced today that it has obtained, effective November
17, 2000, amendments to the credit agreement
governing its $1.0 billion senior secured credit facility
with a syndicate of banks led by Lehman Commercial
Paper Inc., as Administrative Agent, as well as the
consent of the bank syndicate to certain transactions
previously restricted by the facility (the ``Consent and
Amendment''), thereby avoiding an event of default by the
Company under the facility. The complete text of the
Consent and Amendment will be included as an exhibit to a
Current Report on Form 8-K to be filed by the Company
with the U.S. Securities and Exchange Commission (the
``Commission'') via EDGAR. The Consent and Amendment, which was
obtained on terms previously described in the Company's
Quarterly Report on Form 10-Q filed with the Commission on
November 14, 2000 and as disclosed by the Company,
replaces the previously existing financial covenants
contained in the credit agreement governing the facility
with the following financial covenants, each as
defined in the Consent and Amendment: (i) total leverage
ratio; (ii) post merger interest coverage ratio; (iii)
fixed charge coverage ratio; (iv) ratio of total
indebtedness to total capitalization; (v) minimum post merger
EBIDTA; and (vi) total beds occupied ratio. The Consent
and Amendment also consents to certain transactions
undertaken or to be completed by the Company and each of
Prison Management Services, Inc. (``PMSI'') and Juvenile
and Jail Facility Management Services, Inc.
(``JJFMSI''), two affiliated service companies, including the
non-cash mergers of each of PMSI and JJFMSI with and into
the Company's wholly owned operating subsidiary. As a
result of this consent, it is anticipated that the
Company will complete the mergers with the service
companies prior to December 31, 2000. The Consent and
Amendment further provides that the Company will be
required to use commercially reasonable efforts to
complete a ``capital raising event'' on or before June 30,