Monday, May 16, 2022
CoreCivic, Inc. (CXW)
Time Has Come Today
CoreCivic is a diversified, government-solutions company with the scale and experience needed to solve tough government challenges in flexible, cost-effective ways. We provide a broad range of solutions to government partners that serve the public good through high-quality corrections and detention management, a network of residential and non-residential alternatives to incarceration to help address America’s recidivism crisis, and government real estate solutions. We are the nation’s largest owner of partnership correctional, detention and residential reentry facilities, and believe we are the largest private owner of real estate used by government agencies in the United States. We have been a flexible and dependable partner for government for nearly 40 years. Our employees are driven by a deep sense of service, high standards of professionalism and a responsibility to help government better the public good. Learn more at www.corecivic.com.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
A New Credit Facility….Friday, CoreCivic reported it had entered into a New Credit Agreement effectively replacing the Company’s existing senior secured credit facilities. As of March 31st, CoreCivic had $167.5 million due April 2023 under its Term Loan A and $124 million due December 2024 under its Term Loan B outstanding under the old facility. Management indicated the possibility of repaying the Term Loan A out of existing cash once a new facility was in place.
…Equals Time for a Stock Buyback. Management has stated on numerous occasions that once a new credit facility was in place, authorization for a stock buyback program would be submitted to the Board. Given where the stock is currently trading and the strong, stable cash flow generation of the business, we believe the Board will grant such request. We believe a program in the $100 million range, or about 7.5% of the current market cap, would send a strong signal to the market….
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.