CoreCivic Completes Sale of Three Non-Core Assets For $326 Million
June 29 2021 - 4:15PM
CoreCivic, Inc. (NYSE: CXW) (the Company)
announced today that it has consummated the sale of 100% of the
membership interests of SSA Baltimore Holdings, LLC, a wholly-owned
unrestricted subsidiary of the Company and the owner of the
approximately 541,000 square-foot Social Security Administration
office building in Baltimore, Maryland ("SSA-Baltimore"). Earlier
in the second quarter of 2021, the Company completed the sale of
two additional properties, its approximately 277,000 square-foot
office property ("Capital Commerce Center") and its approximately
217,000 square-foot warehouse property ("NARA Property") in a
single transaction. These three properties were sold for an
aggregate sales price of $326.0 million. The Company had purchased
all three properties in 2018 in separate transactions for an
aggregate gross purchase price of $293.6 million.
Damon Hininger, President and CEO of CoreCivic,
stated, "The completion of these asset sales is another important
example of our focus on strengthening our balance sheet and
creating long-term shareholder value. Including net proceeds of
nearly $30.0 million generated from the sales of 42 non-core
government-leased assets in the fourth quarter of 2020, we have
exceeded our targeted net proceeds from the sale of non-core assets
of up to $150.0 million announced in August 2020, in connection
with our decision to revoke our election as a real estate
investment trust. Hininger continued, "Combining our resilient cash
flows with the sales of our non-core assets, we continue to make
significant progress toward our goal of reducing our debt ratio to
a range of 2.25x to 2.75x."
Concurrent with the sale of these three
properties, the Company used $194.4 million of the aggregate sales
proceeds to fully repay two non-recourse mortgage notes associated
with SSA-Baltimore and Capital Commerce Center, including
prepayment premiums of $32.5 million. The total outstanding
balances of the non-recourse mortgage notes, both of which had
interest rates of 4.5%, were $161.9 million on the dates sold. The
sale of these three non-core government-leased properties generated
net proceeds of nearly $130.0 million after repayment of the
non-recourse mortgage notes and other transaction-related
costs.
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
serve the public good through corrections and detention management,
a network of residential reentry centers to help address America’s
recidivism crisis, and government real estate solutions. CoreCivic
is the nation’s largest owner of partnership correctional,
detention and residential reentry facilities, and believes it is
the largest private owner of real estate used by government
agencies in the U.S. CoreCivic has been a flexible and dependable
partner for government for more than 35 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.
Forward-Looking Statements
This press release includes forward-looking
statements regarding the Company’s goal of reducing debt. These
forward-looking statements may be affected by risks and
uncertainties in the Company’s business and market conditions. This
information is qualified in its entirety by cautionary statements
and risk factor disclosures contained in the Company’s Securities
and Exchange Commission (SEC) filings, including the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31,
2020, filed with the SEC on February 22, 2021, and the Company’s
Quarterly Report on Form 10-Q for the quarter ended March 31, 2021,
filed with the SEC on May 6, 2021. The Company wishes to caution
readers that certain important factors may have affected and could
in the future affect the Company’s actual results and could cause
the Company’s actual results for subsequent periods to differ
materially from those expressed in any forward-looking statement
made by or on behalf of the Company.
The Company 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 – Vice
President, Communications - (615) 263-3107 |
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