CoreCivic sells two California detention facilities to U.S. for $1.5B

CoreCivic, Inc. (NYSE: CXW) completed the sale of two California detention facilities to the U.S. Department of Homeland Security on July 2, 2026, for a combined gross price of $1.5 billion, according to a company statement.

The 2,560-bed California City Detention Facility in California City sold for $732.6 million, and the 1,994-bed Otay Mesa Detention Center in San Diego sold for $739.2 million. After approximately $0.4 billion in federal and state income taxes and transaction expenses, CoreCivic expects net proceeds of roughly $1.1 billion.

The company plans to use a portion of the proceeds to repay its Bank Credit Facility, which carries an outstanding balance of $270.0 million on the Revolving Credit Facility, $107.8 million on the Initial Term Loan, and $100.0 million on the Incremental Term Loan. CoreCivic also intends to retire the remaining $238.5 million balance of its 4.75% senior notes due October 2027. Remaining proceeds are designated for general corporate purposes, which may include additional debt repayments and share repurchases, subject to leverage ratio conditions under existing debt agreements.

CoreCivic said it expects to continue managing both facilities under existing contracts with Immigration and Customs Enforcement, though contract terms may be modified to reflect the change in ownership. The management contract for the California City facility expires in August 2027, while the Otay Mesa contract runs through December 2029 and includes a five-year extension option.

The company noted it is in discussions with ICE regarding potential additional facility sales, though it cautioned no assurance can be given that further transactions will occur.

President and Chief Executive Officer Patrick Swindle stated, "The sale of these facilities at what we believe is a fair valuation provides the Company with significant balance sheet flexibility and positions us well to grow the Company's businesses and return value to its shareholders, while remaining a dependable partner for government."

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