CoreCivic sells two detention facilities to DHS for $1.5B; net proceeds ~$1.1B

CoreCivic, Inc.

• Sold California City (2,560 beds) for $732.6M and Otay Mesa (1,994 beds) for $739.2M to DHS.
• Net proceeds after ~$0.4B taxes and expenses expected to be ~$1.1B.
• Proceeds to repay $477.8M bank credit facility and $238.5M of 4.75% senior notes due 2027.
• Company expects to continue managing both facilities under existing ICE contracts (California City expires Aug 2027, Otay Mesa Dec 2029 with 5-yr extension).
• CEO cites fair valuation, balance sheet flexibility, potential for additional sales and share repurchases.