CoreCivic closed a new credit agreement for an aggregate principal amount of up to $1 billion, replacing the company’s existing $900 million revolving credit facility and term loan, which had an outstanding balance of $82.5 million as of March 31, 2018.
According to a related 8-K filing, Bank of America served as adminisative agent for the transaction.
The new credit agreement provides for a term loan of $200 million and a revolving credit facility in an aggregate principal amount of up to $800 million. Among other things, the new ageement extends the maturity of the existing credit facility from July 2020 to April 2023 and increases the total leverage covenant from 5.0x to 5.5x. The new credit agreement also contains an accordion feature that provides for uncommitted, incremental extensions of credit in the form of increases in the revolving commitments or incremental term loans of up to $350 million, as requested by CoreCivic, and provides additional flexibility by increasing certain permitted investment, disposition and borrowing thresholds.
Interest rate margins, unused facility fees and commitment fees for letters of credit are unchanged from the existing credit facility, except for the addition of a new interest rate margin and fee tier to accommodate the increase in the covenant for total leverage from 5.0x to 5.5x. All other terms remain substantially the same.
Nashville, TN-based CoreCivic is a diversified government solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways.
