Corrections Corp. (CXW) Enters New Agreement in Idaho; Renews Cimarron Correctional Contract
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CCA (Corrections Corporation of America) (NYSE: CXW), has entered into a new agreement with the Idaho Department of Corrections to house up to 800 inmates at CCA's Kit Carson Correctional Center in Colorado. Additionally, CCA announced that it has renewed its agreement with the Oklahoma Department of Corrections. As part of the renewal, CCA has agreed to increase the contracted capacity by 240 inmates at its Cimarron Correctional Facility, and will now house up to 2,520 inmates for the state of Oklahoma.
The new agreement with Idaho will provide up to 800 beds of capacity immediately available at CCA's 1,488-bed Kit Carson Correctional Center. The management contract has an initial term of two years, with four one-year renewal options upon mutual agreement. CCA expects to initially receive 250 inmates from Idaho in the next few weeks with the potential for additional inmates over the contract term depending on the state of Idaho's capacity needs. CCA currently manages more than 2,000 inmates for the state of Idaho at the Idaho Correctional Center in Boise.
The renewal with Oklahoma will increase the base contract by over 10% to 2,520 inmates. However, the guaranteed occupancy would only apply to the base population and will not apply to the additional 240 beds. CCA expects to begin receiving the additional inmates in July and expects the receipt of these inmates to be significantly completed by the end of the third quarter of 2012. CCA currently manages more than 2,250 inmates from the state of Oklahoma at CCA's Cimarron Correctional Facility and Davis Correctional Facility. CCA's management contract with Oklahoma has one remaining annual renewal option which would extend the contract through June 30, 2014.
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The new agreement with Idaho will provide up to 800 beds of capacity immediately available at CCA's 1,488-bed Kit Carson Correctional Center. The management contract has an initial term of two years, with four one-year renewal options upon mutual agreement. CCA expects to initially receive 250 inmates from Idaho in the next few weeks with the potential for additional inmates over the contract term depending on the state of Idaho's capacity needs. CCA currently manages more than 2,000 inmates for the state of Idaho at the Idaho Correctional Center in Boise.
The renewal with Oklahoma will increase the base contract by over 10% to 2,520 inmates. However, the guaranteed occupancy would only apply to the base population and will not apply to the additional 240 beds. CCA expects to begin receiving the additional inmates in July and expects the receipt of these inmates to be significantly completed by the end of the third quarter of 2012. CCA currently manages more than 2,250 inmates from the state of Oklahoma at CCA's Cimarron Correctional Facility and Davis Correctional Facility. CCA's management contract with Oklahoma has one remaining annual renewal option which would extend the contract through June 30, 2014.
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