CoreCivic, Inc. (NYSE: CXW) increased the limit on its fourth amended and restated revolving credit facility to $575 million, up from $275 million, by expanding the accordion feature from $200 million to $300 million. The amendment, executed and effective on December 1, 2025, adds $391.4 million of borrowing capacity beyond the $165 million of outstanding commitments, giving the company a total of $575 million available if needed.
The expansion comes as CoreCivic reports a strong earnings season, with total revenue for the three months ended September 30, 2025 at $580.4 million—an 18% increase over the same period in 2024—and net income of $26.3 million, up from $21.1 million. The company’s safety segment, which accounts for 94% of revenue, generated $545.1 million, while community and property segments contributed $30.7 million and $4.7 million respectively. The new credit line is intended to support the firm’s anticipated contract awards, particularly from U.S. Immigration and Customs Enforcement, and to provide liquidity for strategic acquisitions and capital allocation initiatives such as its expanded share‑repurchase program.
CoreCivic’s chief financial officer, David M. Garfinkle, said the facility expansion “provides us with enhanced balance‑sheet flexibility while remaining positioned for strategic investments and long‑term value creation.” He added that the company expects significant increases in revenues and cash flows in 2026 and 2027 driven by recent contract awards. CEO Damon T. Hininger noted that the expanded buyback authorization—now $700 million after a $200 million increase—reflects confidence in the company’s valuation and a commitment to returning capital to shareholders.
The credit facility expansion aligns with CoreCivic’s broader strategy to capitalize on growing demand for detention capacity. Legislative actions such as the Laken Riley Act and the One Big Beautiful Bill Act are expected to increase ICE’s detention requirements, creating a tailwind for the company’s core safety segment. At the same time, CoreCivic has cut its full‑year earnings guidance to account for start‑up expenses associated with new immigration detention centers, indicating a short‑term headwind that the company expects to overcome as facilities reach stable occupancy.
Analysts have responded positively to the expansion, upgrading CoreCivic to a buy rating and setting a $32.00 price target. The move is seen as a signal of management’s confidence in the company’s growth prospects and its ability to leverage debt to fund future opportunities while maintaining a robust capital allocation program.
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