Corrections Corporation of America Announces Record Date for Paid-In-Kind Dividend on Shares of Series B Preferred Stock
NASHVILLE, Tenn.--(BUSINESS WIRE)--Dec. 13, 2000--Corrections Corporation of America (formerly Prison Realty Trust, Inc.) (NYSE:CXW) announced today that, pursuant to the terms of the Company's Series B Cumulative Convertible Preferred Stock (the "Series B Preferred Stock"), the Company's Board of Directors has declared a paid-in-kind dividend on the shares of Series B Preferred Stock for the period from September 22, 2000 (the original date of issuance), through December 31, 2000, payable on Tuesday, January 2, 2001, to the holders of record of the Company's Series B Preferred Stock on Friday, December 22, 2000. As a result of the Board's declaration, the holders of the Company's Series B Preferred Stock will be entitled to receive approximately 3.3 shares of Series B Preferred Stock for every 100 shares of Series B Preferred Stock held by them on the record date. The number of shares to be issued as the dividend is based on a dividend rate of 12% per annum of the stock's stated value ($24.46 per share). The dividend will be paid only on shares of Series B Preferred Stock outstanding on the record date and not converted into shares of the Company's common stock during the final conversion period for the shares which began on December 7, 2000, and will end on December 20, 2000. Therefore, the exact number of shares of Series B Preferred Stock to be issued as the dividend will not be able to be determined until after December 20, 2000.
Under the terms of the Series B Preferred Stock, the Company is required to pay dividends, when and as declared by the Company's Board of Directors, on shares of the Series B Preferred Stock not converted in additional shares of Series B Preferred Stock at a rate of 12% per year for the first three years following the issuance of the shares and cash dividends at a rate of 12% per year thereafter, payable for the period from issuance through December 31, 2000, and quarterly thereafter in arrears. The shares of Series B Preferred Stock issued as the paid-in-kind dividend will not be convertible at any time into shares of the Company's common stock.
The Company remains prohibited from declaring or paying any dividends with respect to its currently outstanding 8.0% Series A Preferred Stock under the terms of its senior secured credit facility. Dividends with respect to the Series A Preferred Stock will continue to accrue under the terms of the Company's charter until such time as payment of such dividends is permitted under the terms of the credit facility. The terms of the Series A Preferred Stock do not prohibit the Company's payment of the paid-in-kind dividend on the shares of Series B Preferred Stock.
About the Company
The Company is the nation's largest provider of detention and corrections services to governmental agencies. The Company is the industry leader in private sector corrections with approximately 61,000 beds in 68 facilities under contract for management in the United States and Puerto Rico. The Company's full range of services includes design, construction, ownership, renovation and management of new or existing jails and prisons, as well as long distance inmate transportation services.
This press release contains statements that are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. Factors that could cause operating and financial results to differ are described in the Company's Form 10-K, as well as in other documents filed with the Securities and Exchange Commission, and these factors include, but are not limited to, the growth of the private corrections and detention industry, the Company's ability to obtain and maintain facility management contracts and general market conditions. The Company does not undertake any obligation to publicly release the result of any revisions to forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
|CONTACT:||Corrections Corporation of America, Nashville|
|Susan Hart, 615/263-3104|
|Karin Demler, 615/263-3005|