CoreCivic Sells Two Detention Facilities for $1.5B
CoreCivic, Inc. completed the sale of its California City and Otay Mesa detention facilities to the Department of Homeland Security for an aggregate gross sales price of $1.5 billion. After federal and state income taxes and transaction expenses, the company anticipates net proceeds of approximately $1.1 billion. CoreCivic plans to use these proceeds to repay $477.8 million in bank credit facility debt and $238.5 million in senior notes, with the remaining funds allocated for general corporate purposes, including potential additional debt repayments, share repurchases, and growth opportunities. The company expects to continue managing both facilities under existing contracts with U.S. Immigration & Customs Enforcement (ICE).
Key Highlights
- CoreCivic sold two detention facilities for an aggregate gross price of $1.5 billion.
- California City Detention Facility sold for approximately $732.6 million.
- Otay Mesa Detention Center sold for approximately $739.2 million.
- Anticipates net proceeds of approximately $1.1 billion after taxes and expenses.
- Plans to repay $477.8 million in outstanding Bank Credit Facility debt.
- Will repay $238.5 million of 4.75% senior notes due October 2027.
- Expects to continue managing both facilities under existing contracts with ICE.
Price Impact
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