Private Prison Firm CoreCivic Sells Junk Bonds to Tackle Debt
- Proceeds from $225 million deal will refinance near-term debt
- Industry’s funding options have wilted as major banks retreat
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CoreCivic Inc., one of the largest operators of private detention facilities in the U.S., raised $225 million in the junk-bond market to refinance debt that’s due to be repaid as soon as 2023, according to a news release Wednesday.
The private prison industry has been facing dwindling financing options in recent years after major banks announced they would no longer lend to the industry, as well as credit rating downgrades and increased environmental, social and governance concerns from investors.