NASHVILLE, Tenn., June 13, 2016 (GLOBE NEWSWIRE) -- CCA (NYSE:CXW) (the “Company” or “Corrections Corporation of America”), America's largest owner of partnership correctional, detention, and reentry facilities, announced today that it has entered into a four-year extension of its lease agreement for the California City Correctional Center with the California Department of Corrections and Rehabilitation (CDCR).
The initial lease agreement with CDCR for the California City Correctional Center included a three-year base term ending on December 1, 2016, and unlimited two-year renewal options upon mutual agreement. CCA agreed to extend the lease through November 30, 2020, or two years longer than the existing agreement provides, in exchange for CCA to provide up to $4.0 million of certain facility and other tenant improvements. The extension provides CDCR with the unilateral right to extend the lease for two additional two-year periods through November 30, 2024, with indefinite two-year renewal options thereafter upon mutual agreement. The remaining terms of the lease remain substantially unchanged from the existing agreement.
"We are pleased to extend the lease of our California City Correctional Center to CDCR, and to further extend the relationship we have had with CDCR since 2006 when we entered into our first contract with CDCR to provide prison capacity and correctional services," said Damon Hininger, CCA's President and Chief Executive Officer. "Our California City Correctional Center has proven to be a great solution to provide CDCR with in-state prison capacity operated by the CDCR, while avoiding significant up-front capital costs associated with new construction."
CCA, a publicly traded real estate investment trust (REIT), is the nation’s largest owner of partnership correctional, detention, and residential reentry facilities and one of the largest prison operators in the United States. We own or control 73 correctional, detention and reentry facilities, with a design capacity of approximately 75,000 beds, and manage 11 additional facilities owned by our government partners with a total design capacity of approximately 14,000 beds, in 20 states and the District of Columbia. CCA specializes in owning, operating and managing prisons and other correctional facilities and providing residential, community reentry and prisoner transportation services for governmental agencies. In addition to providing fundamental residential services, our facilities offer a variety of rehabilitation and educational programs, including basic education, faith-based services, life skills and employment training and substance abuse treatment. These services are intended to help reduce recidivism and to prepare offenders for their successful reentry into society upon their release.
This press release contains statements as to our beliefs and expectations of the outcome of future events that are forward-looking statements as defined within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from the statements made. A list of factors that could cause operating and financial results to differ are described in the filings we make from time to time with the Securities and Exchange Commission.
CCA takes no responsibility for updating the information contained in this press release following the date hereof to reflect events or circumstances occurring after the date hereof or the occurrence of unanticipated events or for any changes or modifications made to this press release or the information contained herein by any third-parties, including, but not limited to, any wire or internet services.
Contact: Cameron Hopewell - Managing Director, Investor Relations - (615) 263-3024
Source:Corrections Corporation of America