CoreCivic Sells Two Facilities in $734 Million Asset Deal
The prison operator planned to direct the proceeds toward corporate purposes including debt reduction and share repurchases.
CoreCivic, Inc. (CXW) completed the sale of two correctional facilities for an aggregate gross price of $734.0 million, extending the prison operator’s shift toward managing government-owned properties while freeing capital for its balance sheet and shareholders. The asset transaction covered the 1,600-bed Prairie Correctional Facility in Appleton, Minnesota, and the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas.
The United States, acting through the Department of Homeland Security, acquired the properties. CoreCivic said it expected to continue managing both facilities under existing contracts with U.S. Immigration and Customs Enforcement, though the terms could change following the transfer of ownership. The Midwest contract runs through September 2027, while the Prairie contract runs through August 2031. ICE retains the ability to terminate the agreements for convenience or because of a lack of appropriated funds.
The sale paired a capital return with operating continuity. CoreCivic said it expected to use the net proceeds for general corporate purposes, potentially including debt reduction and repurchases of its common stock. Its board also expanded the company’s share-repurchase authorization by $500.0 million, bringing the total authorization to $1.2 billion.
The properties were at different stages of operation when the transaction closed. CoreCivic had begun accepting detainees at Midwest in March 2026 after receiving a special-use permit, and it previously expected the facility to reach stabilized occupancy in the third quarter. Prairie had been idle since 2010, but CoreCivic received a new five-year ICE management contract shortly before the sale. The company expected intake to begin in the fourth quarter of 2026 and full activation in the second quarter of 2027, when Prairie was projected to generate about $75 million in annual revenue.
The transaction followed CoreCivic’s July sale of its California City Detention Facility and Otay Mesa Detention Center to the federal government for a combined $1.5 billion. The company said those earlier sales were expected to produce about $1.1 billion in net proceeds after taxes and transaction expenses, with part earmarked for repayment of bank debt and senior notes. Together with the Prairie and Midwest transaction, CoreCivic said four facility sales carried a combined gross price of $2.2 billion and were expected to yield approximately $1.6 billion in net proceeds.
CoreCivic’s continuing management role leaves the company exposed to contract duration, funding and termination provisions even after transferring ownership. The sales nevertheless convert property value into capital that can reduce debt or fund repurchases while preserving, for now, the operating relationships tied to the four facilities.