A US-based bank holding and financial services company. It has been one of the main financial backers of private prison company CoreCivic.
First Horizon Corporation is a bank holding and financial services company headquartered in Memphis, Tennessee. It conducts banking operations primarily through its subsidiary First Horizon Bank (formerly First Tennessee Bank). In 2022, First Horizon operated 427 banking centers across 12 U.S. states and generated just over $3 billion in revenue.
Past Financing of Private Prison Companies
First Horizon has been identified as one of several major financiers of private prison and immigrant detention companies, having provided revolving lines of credit, term loans, and bond underwriting services to CoreCivic. While other private prison financiers announced in 2019 that they would exit their relationships with private prison companies, First Horizon has made no such announcement as of August 2023.
In 2018, CoreCivic entered into an amended $1 billion credit agreement with a syndicate of banks that included First Horizon Bank. Replacing a previous $900 million credit agreement, this credit facility was originally set to expire in April 2023. Under the agreement, First Horizon Bank provided a $30 million revolving line of credit and a $7.5 million term loan.
First Horizon also served as an underwriter for the following CoreCivic bond offering:
- September 2015: CoreCivic issued $250 million of bonds, with a maturity date of 2022. As part of a syndicate of banks, First Horizon Bank subsidiary FTN underwrote $6.3 million worth of these bonds.
Additionally, CoreCivic's Chairman of the Board of Directors, Mark Emkes, formerly served as a director and chair of the audit committee of First Horizon.
Discerning the Company's Role in Current Credit Agreements
As of September 2023, First Horizon is involved in the following bond agreement with CoreCivic:
- October 2017: CoreCivic issued $250 million of bonds, with a maturity date of 2027. As part of a syndicate of banks, First Horizon Bank subsidiary FTN underwrote an undisclosed proportion of these bonds.
In May 2022, CoreCivic entered into an amended credit agreement, effectively replacing its $1 billion credit facility with a $350 million agreement. Consisting of a $250 million revolving line of credit and a $100 million term loan, this agreement extends the previous credit facility's April 2023 maturity date to May 2026. SEC filings do not reveal whether First Horizon Bank is still involved in this agreement.