DivestmentJul 6, 2026, 08:02 AM
CoreCivic Sells 2 Facilities for $1.5B; Repays Debt
AI Summary
CoreCivic, Inc. announced the sale of its 2,560-bed California City Detention Facility and 1,994-bed Otay Mesa Detention Center to the United States for an aggregate gross sales price of $1.5 billion. After taxes and transaction expenses, the company anticipates net proceeds of approximately $1.1 billion. CoreCivic plans to use a significant portion of these proceeds to repay outstanding debt, including its Bank Credit Facility and 4.75% senior notes, with remaining funds for general corporate purposes, potentially including share repurchases. The company expects to continue managing both facilities under existing contracts with Immigration & Customs Enforcement (ICE).
Key Highlights
- CoreCivic sold its California City and Otay Mesa Detention Facilities.
- Aggregate gross sales price was $1.5 billion.
- Net proceeds are anticipated to be approximately $1.1 billion.
- Company plans to repay $270.0M Revolving Credit Facility.
- Company plans to repay $107.8M Initial Term Loan and $100.0M Incremental Term Loan.
- Company plans to repay $238.5M of 4.75% senior notes due October 2027.
- Remaining net proceeds for general corporate purposes, including potential share repurchases.
- CoreCivic expects to continue managing the facilities under existing contracts.
Price Impact
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