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Corrections Corporation of America Message Board

  • sam_0534 sam_0534 Jan 11, 2000 9:29 AM Flag

    WHC price

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    20 mins - disclaimer

    Tuesday January
    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)

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    • 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.

    • The 8K shows how the new credit line will be used. One item is repayment of existing debt of $960.5M.

    • 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
      or deny.

    • 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

      NASHVILLE, Tenn.,
      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
      transportation services.

      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.

      This news
      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
      Trust, Inc.

      CO: Prison Realty Trust, Inc.;
      Corrections Corporation of Australia

      ST: Tennessee,


      SU: CON

      11:10 EST

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