Private prison company sells two of California’s immigrant detention centers to the feds
CoreCivic expects about $1.1 billion in net proceeds and may keep operating the sites under Immigration and Customs Enforcement contracts.
- On July 2, CoreCivic, Inc. completed the $1.5 billion sale of its California City Detention Facility and Otay Mesa Detention Center to the U.S. Department of Homeland Security.
- Net proceeds from the sale are expected to reach approximately $1.1 billion, which CoreCivic intends to use for reducing debt and retiring $238.5 million in senior notes due in 2027.
- Under existing contracts with U.S. Immigration and Customs Enforcement, CoreCivic expects to continue managing both sites, although terms may be renegotiated due to the ownership change.
- The Otay Mesa facility has faced ongoing legal challenges regarding local health inspections, including a March lawsuit where San Diego County officials claimed inspectors were blocked under a 2024 state law.
- Patrick Swindle, CoreCivic's President and Chief Executive Officer, stated the sale provides "significant balance sheet flexibility" and positions the company to remain a long-term government partner.
23 Articles
23 Articles
Otay Mesa Detention Center one of two private facilities sold to DHS
Private prison operator CoreCivic announced Monday it has sold two of its California detention facilities to the federal government, including the Otay Mesa Detention Center. The sale was completed last Thursday for Otay Mesa and the California City Detention Facility for a total of $1.5 billion, according to an announcement issued to investors on Monday. CoreCivic said it would continue to manage both facilities as part of its existing contract…
CoreCivic sells Otay Mesa Detention Center to federal government
SAN DIEGO, Calif. (KESQ) - Private prison operator CoreCivic announced today it has sold two of its California detention facilities to the federal government, including the Otay Mesa Detention Center. The sale was completed last Thursday for Otay Mesa and the California City Detention Facility for a total of $1.5 billion, according to an announcement The post CoreCivic sells Otay Mesa Detention Center to federal government appeared first on KE…
The Derrick
Feds buy two privately owned California ICE detention centers for $1.5 billion
FRESNO, Calif. — The Department of Homeland Security has purchased two privately-operated ICE detention facilities in California for $1.5 billion dollars, according to company officials. Tennessee-based private prison operator CoreCivic announced Monday that it had completed the sale of the…
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