Potential Sale of McRae
Correctional Facility
On June 13, 2022, the Georgia Building Authority approved the
purchase of CoreCivic, Inc.’s (“CoreCivic”) 1,978-bed McRae Correctional Facility
located in McRae, Georgia (the “McRae Facility”), for a purchase
price of $130.0 million. CoreCivic currently has a
management contract with the Federal Bureau of Prisons at the McRae
Facility, which expires November 30, 2022 (the “McRae
Contract”). As previously disclosed, CoreCivic does not expect
the McRae Contract to be renewed upon its expiration.
In connection with its potential purchase of the McRae Facility the
Georgia Building Authority authorized the lease of the McRae
Facility to CoreCivic for up to four months, which will allow
CoreCivic to continue to service the McRae Contract through its
expiration later this year. CoreCivic anticipates the sale,
and temporary lease-back, of the McRae Facility to be completed
during the third quarter of 2022.
The sale of the McRae Facility is subject to, among other things,
the negotiation of a definitive purchase agreement and a definitive
lease agreement with the Georgia Building Authority.
CoreCivic Share Repurchase Plan
Update
As disclosed on a Current Report on Form 8-K filed with the Securities and
Exchange Commission on May 16, 2022, the Board of Directors of
CoreCivic (the “Board”) authorized the repurchase of up to
$150.0 million of CoreCivic’s common stock.
Since May 16, 2022 through June 23, 2022, CoreCivic has
repurchased 2.8 million shares of CoreCivic’s common stock at
an average price of approximately $12.68 per common share,
representing an aggregate purchase price of $35.0 million,
excluding fees and commissions. There is approximately
$115 million remaining under the current Board authorized
repurchase plan. The remaining $115 million of repurchases of
the CoreCivic’s common stock will be made in accordance with
applicable securities laws and may be made at management’s
discretion from time to time in the open market, through privately
negotiated transactions, or otherwise. The share repurchase program
has no time limit and does not obligate CoreCivic to purchase any
particular amount of its common stock. The authorization for the
share repurchase program may be terminated, suspended, increased or
decreased by the Board in its discretion at any time.
Cautionary Note Regarding
Forward-Looking Statements
This Current Report on Form 8-K includes forward-looking statements
regarding, among other things, the anticipated closing of potential
sale and lease of the McRae Facility, and CoreCivic’s existing
share repurchase program. These forward-looking statements may be
affected by risks and uncertainties in CoreCivic’s business and
market conditions. These include the risks and uncertainties
associated with the potential sale and lease of the McRae Facility,
including, but not limited to, the negotiation of a definitive
purchase agreement and a definitive lease agreement; adverse
effects on CoreCivic’s common stock because of a failure to
complete the sale and lease of the McRae Facility; and CoreCivic’s
ability to further utilize its share repurchase program. This
information is qualified in its entirety by cautionary statements
and risk factor disclosures contained in CoreCivic’s filings with
the U.S. Securities and Exchange Commission, including CoreCivic’s
annual report on Form 10-K,
quarterly reports on Form 10-Q and current reports on Form
8-K. Readers are cautioned
that certain important factors may have affected and could in the
future affect CoreCivic’s actual results and could cause
CoreCivic’s actual results for subsequent periods to differ
materially from those expressed in any forward-looking statement
made by or on behalf of CoreCivic. Except as required by applicable
law, CoreCivic undertakes no obligation to update forward-looking
statements to reflect events or circumstances after the date
hereof.