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At A Glance

Windjammer Capital Investors has been awarded "Middle Market Firm of the Year: North America" in two consecutive years, 2011 and 2012, by DealMakers Monthly magazine.

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Jun, 2006 - Windjammer Exits its Investment in Corrections Corporation of America

Windjammer Capital Investors announced that it had recently exited its entire investment in Corrections Corporation of America ("CCA") , stock symbol: CXW. Windjammer’s Fund I (PMI Mezzanine Fund) investment was primarily in the form of a convertible, subordinated note as well as an equity add-on made in 1996 and 1998 respectively. The overall investment generated a 19.8% IRR over a ten year period returning approximately $203 million on an investment of $45 million for a 4.5x multiple return on invested capital. Windjammer had made a prior investment in the Company in 1992 of $7.5 million returning over $62 million which generated a 62% IRR and 8.3x multiple return on invested capital over a 10-year period. "During the nearly 15-year association between Windjammer with CCA, we saw the Company grow from $71 million in revenue and $8.5 million in EBITDA to revenue of $1.2 billion and a run-rate EBITDA over $260 million and an enterprise value in excess of $2.8 billion," stated Bob Bartholomew, Chairman & Managing Principal of Windjammer. "Exiting CCA is like saying 'good-bye' to an old friend" added Bob. During the firm’s involvement with the Company, CCA's bed count increased from approximately 7,000 beds to 71,000 under management and is currently larger than several of the next largest competitors combined. In 1992, the Company was also the largest private prison operator when Windjammer’s initial investment was to support a strategic move into the actual ownership of private prisons. Previously the industry had been primarily a "managed only" concept. "Moving into the ownership of prisons made sense to us as it actually allowed the Company to build a more competitive position in the industry while simultaneously allowing each facility to generate greater cash flows from a single contract" stated Bob. "We were pleased to support the Company’s move into ownership of the facilities in 1992 and subsequently our additional financing supported the Company’s building of large, medium security facilities in Arizona, now a key operating center for the Company," added Bob. While there will no longer be a formal connection with the Company, "our investors eventually want liquidity and a ten year investment for a fund manager is a long time, so it was time for Windjammer to exit" Bob stated. Windjammer would like to pursue other opportunities in the corrections industry, hoping to work with CCA again as a result.


About the Company: Corrections Corporation of America is the nation’s largest owner and operator of privatized correctional and detention facilities and one of the largest prison operators in the U.S., behind only the federal government and three states. CCA currently operates 63 facilities, including 39 company-owned facilities, with a total design capacity of approximately 71,000 beds in 19 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing inmate residential and prisoner transportation services for governmental agencies.

"We were very fortunate to have Windjammer as our partner. Their expertise in working with niche-oriented, leading companies in the middle market, as well as their strategic guidance and resources were valuable to us as we expanded the business."

Dale Schulz, CEO
ST Specialty Foods