CCA to Lease the North Fork Correctional Facility to the Oklahoma Department of Corrections
May 06 2016 - 7:30AM
Corrections Corporation of America (NYSE:CXW) (the
“Company” or “CCA”), America's largest owner of partnership
correctional, detention, and reentry facilities, announced today
that it has entered into a lease for its North Fork Correctional
Facility with the Oklahoma Department of Corrections.
The lease agreement commences on July 1, 2016, and
includes a five-year base term with unlimited two-year renewal
options. The average annual rent during the five-year base
term is $7.5 million, including annual rent in the fifth year of
$12.0 million. After the five-year base term, the annual rent
will be equal to the rent due during the prior lease year, adjusted
for increases in the Consumer Price Index (CPI). CCA will be
responsible for repairs and maintenance, property taxes and
property insurance, while all other aspects and costs of facility
operations will be the responsibility of the Oklahoma Department of
Corrections. This transaction is expected to generate $0.03
per diluted share for the year ending December 31, 2016.
"We are pleased to expand our relationship with the
Oklahoma Department of Corrections through this lease agreement,
which provides Oklahoma with immediate capacity at a modern,
efficient correctional facility," said Damon Hininger, CCA's
President and Chief Executive Officer. "Providing flexible
and innovative solutions to meet the needs of our partners is at
the core of CCA's value proposition and this lease arrangement
allows the state of Oklahoma to avoid making a significant capital
investment for new bed capacity, illustrating the taxpayer benefits
realized through public-private partnerships."
Upon commencement of the lease of the North Fork facility, CCA
will lease seven correctional and residential reentry facilities to
third party operators, containing 5,765 beds in four states.
About CCA
CCA, a publicly traded real estate investment trust (REIT), is
the nation’s largest owner of partnership correctional, detention,
and residential reentry facilities and one of the largest prison
operators in the United States. We own or control 73
correctional, detention and reentry facilities, with a design
capacity of approximately 75,000 beds, and manage 11 additional
facilities owned by our government partners with a total design
capacity of approximately 14,000 beds, in 20 states and the
District of Columbia. CCA specializes in owning, operating and
managing prisons and other correctional facilities and providing
residential, community reentry and prisoner transportation services
for governmental agencies. In addition to providing
fundamental residential services, our facilities offer a variety of
rehabilitation and educational programs, including basic education,
faith-based services, life skills and employment training and
substance abuse treatment. These services are intended to
help reduce recidivism and to prepare offenders for their
successful reentry into society upon their release.
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. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. A list of 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.
CCA takes 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.
Contact:
Investors: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024
Media: Steve Owen – Managing Director, Communications - (615) 263-3107
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