CoreCivic pivots to new finance strategy, counter negative publicity

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Private prison giant CoreCivic is seeking to counter negative publicity and reverse its falling stock as the national criminal justice reform debate plays out at a South Nashville prison. 

CoreCivic, based in Nashville’s Brentwood suburb, announced a financial restructuring this week that will shift profits to paying down debt and investing in new and improved properties while reducing its dependence on credit lenders. 

The company will revert to a C corporation for the second time in seven years. Its stint as a real-estate investment trust (REIT) will end at the beginning of next year. The change will increase its taxes but allow it to hold onto profits rather than paying them out to shareholders. 

“We believe our revised structure and strategy, combined with a resilient core business, will result in significantly more liquidity, a stronger balance sheet and lower cost of capital, which will enable us to reduce our reliance on the capital markets,” said CoreCivic CEO Damon T. Hininger. “We’re excited about the opportunity to create value for our shareholders while growing in even more ways that help those in our care succeed with the next step in their lives.”

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