CCA Contract Renewed in NM

Business Week

Corrections Corp. of America said Wednesday that its contract to manage federal inmates at a 2,300-bed California prison wasn’t renewed and will expire in September.

Meanwhile, the nation’s largest prison operator said a contract to manage a smaller New Mexico facility was renewed.

CCA said it would continue management of California City Correctional Center through September.

The renewed contract with the Cibola County Corrections Center in Milan, N.M., will go into effect Oct. 1. That deal at the 1,200-bed facility, has a four-year term with three, two-year renewal options.

CCA said it will update its annual guidance next month when it announces full-year earnings results.

CCA owns or operates 65 facilities with design capacity of approximately 87,000 beds in 19 states and the District of Columbia.

Its shares fell 52 cents, or 2.2 percent, to $23.36 in morning trading.