CCA Amends, Extends Revolving Credit Facility
Corrections Corporation of America (CCA) announced that it entered into an amendment of its amended and restated credit agreement. The amendment, among other things, increases the aggregate principal amount of the revolving commitments to $900 million and includes an accordion feature that provides for uncommitted incremental extensions of credit in the form of increases in the revolving commitments or incremental term loans in an aggregate principal amount up to $100 million, as requested by the company.
The amendment also provides for, among other things, an extension of the maturity date from December 2016 to December 2017, modification of certain financial covenants and modification of the negative covenant regarding distributions to accommodate the Company’s status as a REIT. Interest rate and fee margins remain unchanged.
CCA is the nation’s largest owner of partnership correction and detention facilities and one of the largest prison operators in the United States.