Upsized Offering. CoreCivic upsized its tack-on offering of 8.25% senior notes to $225 million from an original $100 million. The demand for CXW paper is a positive sign that debt investors believe the Company can continue to satisfy its debt obligations, in our view, and provides at least a glimpse as to debt investors' view of the Company's business model.Details. The Additional Notes were priced at 102.25% of their aggregate principal amount, plus accrued interest from April 14, 2021, the issue date for CoreCivic’s previously issued $450 million aggregate principal amount of 8.25% senior unsecured notes due 2026 (the “Existing Notes”). The Additional Notes will have an effective yield to maturity of 7.65% and will constitute a single class of securities with the Existing Notes. The aggregate net proceeds from the sale of the Additional Notes are expected to be approximately $225.5 million.Use of Proceeds. As we noted in yesterday's update, CoreCivic intends to use the net proceeds from the offering of the Additional Notes for general corporate purposes, which may include purchasing CoreCivic’s existing $174.0 million principal amount of 4.625% senior notes due 2023 and CoreCivic’s existing $250.0 million principal amount of 4.75% senior notes due 2027 in open market or privately negotiated transactions, and/or repayment of amounts outstanding under CoreCivic’s revolving credit facility, Term Loan A or Term Loan B.Maintaining Outperform and $15 PT. We continue to believe CXW shares present a compelling risk/reward opportunity. We believe the services offered by CoreCivic are needed by its government partners to solve the complex issues they face. We are maintaining our Outperform rating and $15.00 12-month price target. At our target, CXW shares would trade at 16.3x our adjusted EPS estimate, 7.7x our AFFO estimate, 8.7x adjusted EBITDA, and 1.8x revenue. Read More >>