CoreCivic Sells Two Additional Detention Facilities
Rhea-AI Summary
CoreCivic (NYSE: CXW) has completed the sale of its 1,600‑bed Prairie Correctional Facility in Appleton, Minnesota and 1,033‑bed Midwest Regional Reception Center in Leavenworth, Kansas to the United States of America, acting through the Department of Homeland Security, for an aggregate gross price of $734.0 million ($495.6 million and $238.4 million, respectively).
According to CoreCivic, after approximately $182.2 million of federal and state income taxes and transaction costs, expected net proceeds are about $522.5 million, intended for general corporate purposes, including possible debt reduction and share repurchases. CoreCivic expects to continue operating both facilities under existing ICE management contracts, which expire in August 2031 and September 2027 but remain terminable by ICE. Following these sales, the company will own or control 61 facilities with roughly 67,000 beds and manage eight additional facilities with 13,000 beds. CoreCivic has also begun preliminary discussions with ICE about potential additional facility sales.
Positive
- $734.0 million aggregate gross sale price for two facilities
- Expected net proceeds of approximately $522.5 million after taxes and costs
- Potential use of proceeds for debt reduction and share repurchases
- CoreCivic continues to operate both sold facilities under ICE contracts
- Post‑sale portfolio: 61 owned/controlled facilities with ~67,000 beds
- Preliminary discussions with ICE about potential additional facility acquisitions from CoreCivic
Negative
- Federal and state income taxes of approximately $182.2 million tied to the sales
- ICE management contracts remain terminable for non‑appropriation of funds or convenience
- Management contracts for the sold facilities expire in 2027 and 2031
- No assurance of continuing to manage the facilities or maintaining current contract terms
- Preliminary talks on additional facility sales may not result in any transactions
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 13 | Debt redemption | Positive | -1.4% | Planned full redemption of 4.750% senior notes due 2027 using cash on hand |
| Jul 07 | Earnings scheduling | Neutral | -3.7% | Announced second-quarter results release and conference call dates |
| Jul 06 | Facility sale | Positive | -2.0% | Completed California facility sales for aggregate gross proceeds of $1.5 billion |
| May 06 | Quarterly earnings | Positive | +3.1% | Reported higher revenue, earnings, adjusted EBITDA and normalized FFO |
| Apr 01 | Earnings scheduling | Neutral | +1.2% | Announced first-quarter results release and conference call dates |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Positive corporate developments produced mixed outcomes, with facility sales and debt redemption followed by negative reactions while quarterly earnings were followed by a positive reaction.
Key Terms
non-appropriation of funds regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Follows Sales of Two Detention Facilities in California
BRENTWOOD, Tenn., Aug. 05, 2026 (GLOBE NEWSWIRE) -- CoreCivic, Inc. (NYSE: CXW) (CoreCivic or the Company) announced today that it has completed the sales of its 1,600-bed Prairie Correctional Facility in Appleton, Minnesota and its 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas to the United States of America and its assigns, by and through the Department of Homeland Security for an aggregate gross sales price of
The Company currently expects to continue to operate the Prairie Correctional Facility and Midwest Regional Reception Center under the existing management contracts with Immigration & Customs Enforcement (ICE), although the terms of the management contracts may be modified to reflect the change in ownership. However, the Company can provide no assurance that it will continue to manage these facilities in the future, or that the terms of the existing management agreements will remain the same. As has always been the case, ICE has the ability to terminate the management contracts for non-appropriation of funds or for convenience. The management contracts for the Prairie Correctional Facility and Midwest Regional Reception Center expire in August 2031 and September 2027, respectively. Following the sale of these facilities, the Company will own or control via a long-term lease 61 correctional, detention, and reentry facilities with a total design capacity of approximately 67,000 beds and manage an additional eight facilities it does not own with a total design capacity of 13,000 beds.
Patrick Swindle, CoreCivic's President and Chief Executive Officer, commented, "We are further demonstrating the value of the Company’s underlying real estate portfolio through the sales of our Prairie Correctional Facility and Midwest Regional Reception Center, following our sales of two detention centers in California last month. We remain committed to growing the Company’s businesses and returning value to our shareholders, while remaining a dependable and flexible partner for government."
In addition to the recently completed facility sales, the Company has recently begun discussions with ICE about the potential acquisition of additional detention facilities from the Company. These discussions are in preliminary stages, and the Company can provide no assurance that any additional sales will occur.
About CoreCivic
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. CoreCivic provides a broad range of solutions to government partners that help build safer, healthier, and more productive communities one person at a time through residential corrections, detention, and reentry management, complementary service offerings to the corrections industry that include pharmaceutical, transportation, and alternatives to incarceration, and government real estate solutions. CoreCivic is the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and one of the largest operators of such facilities in the United States. CoreCivic has been a flexible and dependable partner for government for more than 40 years. CoreCivic’s employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Forward-Looking Statements
This press release contains statements as to our beliefs and expectations of the outcome of future events that are "forward-looking" statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. These include, but are not limited to, the risks and uncertainties associated with: (i) changes in government policy, legislation and regulations that affect utilization of the private sector for corrections, detention, and residential reentry services, in general, or our business, in particular, including, but not limited to, the continued utilization of our correctional and detention facilities by the federal government as a consequence of presidential executive orders, changes in how the federal government, including ICE, elects to use our detention capacity or otherwise procures alternative detention capacity, and the impact of any changes to immigration reform and sentencing laws (we do not, under longstanding policy, lobby for or against policies or legislation that would determine the basis for, or duration of, an individual’s incarceration or detention); (ii) our ability to obtain and maintain correctional, detention, and residential reentry facility management contracts because of reasons including, but not limited to, sufficient governmental appropriations, contract compliance, negative publicity and effects of inmate disturbances; (iii) changes in the privatization of the corrections and detention industry, the acceptance of our services, the timing of the opening of new facilities and the commencement of new management contracts (including the extent and pace at which new contracts are utilized), as well as our ability to utilize available beds; (iv) our ability to successfully activate idle facilities in a timely manner in order to meet the growth in demand for our facilities and services from the federal government that has occurred as a result of changes in policies and actions of the current presidential administration, and to realize projected returns resulting therefrom; (v) general economic and market conditions, including, but not limited to, the impact governmental budgets can have on our contract renewals and renegotiations, per diem rates, and occupancy; (vi) fluctuations in our operating results because of, among other things, changes in occupancy levels; competition; contract renegotiations or terminations including as a result of a change in facility ownership; inflation and other increases in costs of operations, including a rise in labor costs; fluctuations in interest rates and risks of operations; (vii) government budget uncertainty, the impact of debt ceilings and government shutdowns, including partial shutdowns, and changing budget priorities; (viii) our ability to successfully identify and consummate future development and acquisition opportunities, integrate their operations, and realize projected returns resulting therefrom; (ix) the availability of debt and equity financing on terms that are favorable to us, or at all; (x) our ability to successfully consummate the sales of additional company-owned assets, including the potential sale of additional facilities to ICE, on a timely basis and on commercially favorable terms; and (xi) the intended use of proceeds from the facility sales described in this press release. Other factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
We take no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services, except as may be required by law.
| Contact: | Investors: Jeb Bachmann - Managing Director, Investor Relations - (615) 263-3024 Media - Steve Owen - Vice President, Communications - (615) 263-3107 |
