The private prison operator expects $1.1B in net proceeds from the deal, boosting premarket stock by 8%.
CoreCivic (CXW) completed the sale of two California detention facilities to the U.S. Department of Homeland Security for $1.5B in gross proceeds. The transaction is expected to yield approximately $1.1B in net proceeds for the company.
Shares of CoreCivic rose 8% in premarket trading following the announcement. The company, a contractor for the Department of Homeland Security, did not provide further details on the use of proceeds or prior comparable sales.
The deal reflects ongoing government reliance on private operators for detention facilities amid broader market scrutiny of the sector.