CoreCivic has completed the sale of two detention facilities to the US government for an aggregate gross price of $734.0 million. The properties are the 1,600-bed Prairie Correctional Facility in Appleton, Minnesota, sold for $495.6 million, and the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas, sold for $238.4 million. After estimated taxes of $182.2 million and transaction costs, net proceeds are expected to be approximately $522.5 million, which the company may use for debt reduction and share repurchases. CoreCivic currently operates both facilities under management contracts with Immigration and Customs Enforcement that expire in 2031 and 2027, respectively, though the terms may be modified and there is no assurance the contracts will continue. The company also disclosed preliminary discussions with ICE about potential additional facility sales.
CoreCivic IncCompleted sale of two facilities for $734M, netting ~$522.5M for debt reduction and buybacks.
