The Brentwood-based private prison operator CoreCivic has secured a $250 million loan to pay off some of its debt.
The new loan comes after a number of American banks — including JPMorgan, Wells Fargo, Bank of America and SunTrust — pledged to stop lending to the controversial private prison industry.
The loan was arranged by the Japanese bank Nomura, but a recent regulatory filing doesn’t disclose who the lenders are.
The loan comes with an interest rate of 4.5% plus LIBOR, with a 1% LIBOR floor. The loan is due in December 2024.
The new interest rate is comparable to other debts held by the company. CoreCivic has a number of notes issued between 2013 and 2017 with interest rates between 4% and 5%.
However, the new loan is secured by some of CoreCivic’s real estate, which isn’t typical for the company.
CoreCivic used the loan to pay off the a portion of $325 million in senior notes that were due in April 2020.
The most recent regulatory filing is only a summary of the loan, but the company plans to include a copy of the loan agreement in its upcoming annual report.