Pacific Life Proposes Prison Realty Restructure

Pacific Life Insurance Co. said Friday that it has proposed a $200-million restructuring plan for a struggling Nashville real estate investment trust that owns prison properties. The Newport Beach life insurer, which owns a 4% stake in Prison Realty Trust Inc., said its proposal is better for shareholders than the company’s plan to sell a $350-million stake to a group led by Blackstone Group Inc. The Pacific Life proposal centers on Prison Realty making a rights offering where shareholders can buy up to $200 million of preferred stock. Facing growing investor backlash against the Blackstone agreement, a Prison Realty spokeswoman said the company’s board will meet with Pacific Life officials next week. Prison Realty’s shares rose 22%, or 81 cents, to $4.50 on the New York Stock Exchange.