A US-based bank holding and financial services company. Its subsidiary PNC Bank has been one of the main financial backers of private prison company CoreCivic. In 2019, it announced that it would not extend any additional credit to companies operating private prisons. As of 2023, CoreCivic's credit agreements do not publicly disclose the financial institutions involved.
PNC Financial Services Group, Inc. is a bank holding and financial services company headquartered in Pittsburgh. PNC Financial conducts banking operations through its principal subsidiary, PNC Bank. In 2022, PNC operated 2,518 branches across 28 U.S. states and generated $21.1 billion in revenue.
Past Financing of Private Prison Companies
PNC Bank 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 it announced in 2019 that it would not extend additional credit to companies operating private prisons, it is unclear, as of 2023, whether it has upheld this commitment.
In 2018, CoreCivic entered into an amended $1 billion credit agreement with a syndicate of banks that included PNC Bank. Replacing a previous $900 million credit agreement, this credit facility was originally set to expire in April 2023. Under the agreement, PNC Bank provided a $112 million revolving line of credit and a $28 million term loan.
PNC Bank also served as an underwriter for the following CoreCivic bond offerings:
- September 2015: CoreCivic issued $250 million of bonds, with a maturity date of 2022. As part of a syndicate of banks, PNC Bank underwrote $24.4 million worth of these bonds.
- April 2013: CoreCivic issued two sets of bonds—one set totaling $325 million, with a maturity date of 2020, and another set totaling $350 million, with a maturity date of 2023. As part of a syndicate of banks, PNC Bank underwrote both sets of bonds; however, SEC filings do not disclose the proportion of bonds underwritten by the bank.
Discerning the Company's Role in Current Credit Agreements
As of September 2023, PNC Bank is involved in the following CoreCivic bond agreement:
- October 2017: CoreCivic issued $250 million of bonds, with a maturity date of 2027. As part of a syndicate of banks, PNC Bank 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 disclose whether PNC Bank is still involved in this agreement.