Private Prison Finds Friendly Banker in Nomura After Bank of America Bails

  • CoreCivic turns to Japanese lender for $250 million loan deal
  • Longtime lender Bank of America had cut ties with company

Photographer: Sam Hodgson/Bloomberg

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Executives at CoreCivic Inc., one of the largest for-profit operators of prisons and immigrant-detention centers in the U.S., were facing dwindling financing options.

Just as the company was preparing to refinance about $325 million of debt in June, Democratic presidential candidate Elizabeth Warren announced a plan to ban private prisons, sending shock waves through the industry. A few days later, the company’s longtime lender, Bank of America Corp., joined the growing ranks of Wall Street firms announcing their intention to stop doing business with the industry.