India, July 7 -- CoreCivic, Inc. (CXW) has completed the sale of its 2,560-bed California City Detention Facility in California and its 1,994-bed Otay Mesa Detention Center in San Diego to the U.S. Department of Homeland Security for a combined gross purchase price of $1.5 billion.
The transaction, completed on July 2, includes $732.6 million for the California City facility and $739.2 million for the Otay Mesa facility. After approximately $0.4 billion in federal and state taxes and transaction expenses, the company expects net proceeds of about $1.1 billion.
CoreCivic said it will use part of the proceeds to repay outstanding debt, including $270.0 million under its revolving credit facility, $107.8 million of its initial term loan, $10...