NASHVILLE, Tenn., Jan. 25 /PRNewswire/ -- Prison Realty Trust, Inc.
(NYSE: PZN) today announced that Corrections Corporation of Australia has
signed a five-year contract with Court Security and Custodial Services of the
Western Australia government to provide prisoner transportation, court custody
and court security. The initial contract, which also provides for two
three-year renewal options, is expected to generate approximately $7.9 million
in annual revenues.
The contract is expected to begin in July 2000. By the end of 2001,
Corrections Corporation of Australia expects to provide transportation and
custodial services for all major law enforcement agencies throughout Western
Australia.
"As seen by today's announcement, the international arm of Prison Realty
Trust continues to garner contracts and expand its services to foreign
governments, particularly in Australia," said Tom Beasley, interim chairman of
the company. "We believe this growth is further evidence that privatization
of public services in both the domestic and international arenas will
increase."
The delivery of the program will require 300 staff in 19 separate
locations and a fleet of 40 vehicles. Corrections Corporation of Australia
will incorporate the most current security and tracking technology, including
satellite phones and real time GPS location systems, in its program delivery.
In addition, the government will have online real time access to the operation
to ensure accountability for Western Australian officials and citizens.
Corrections Corporation of Australia is an affiliate of one of the
privately held service companies, which does business as Corrections
Corporation of America, of which Prison Realty Trust Inc. has a 95% equity
ownership interest.
Corrections Corporation of America 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
contracts in the United States, Puerto Rico, Australia and the United Kingdom.
The company'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.
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.
http://www.prnewswire.com/news-releases/corrections-corporation-of-australia-awarded-contract-to-provide-inmate-transportation-and-court-security-72202952.html
No comments:
Post a Comment