A US-based bank holding and financial services company. It has been one of the main financial backers of private prison companies CoreCivic and GEO Group. After announcing in 2021 that it would not extend additional credit services to CoreCivic, it became the new trustee of a bond agreement with the company, set to mature in 2026.
Regions Financial Corporation is a bank holding and financial services company headquartered in Birmingham, Alabama. Regions conducts banking operations through its principal subsidiary, Regions Bank. In 2022, the bank operated 1,286 branches, primarily in the Southeastern U.S., and generated $7.2 billion in revenue.
Past Financing of Private Prison Companies
Regions 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 and GEO Group. In 2021, the bank announced that it would cut ties with CoreCivic by 2023; however, it has not upheld this commitment.
In 2018, CoreCivic entered into an amended $1 billion credit agreement with a syndicate of banks that included Regions Bank. Replacing a previous $900 million credit agreement, this credit facility was originally set to expire in April 2023. Under the agreement, Regions Bank provided a $96 million revolving line of credit and a $24 million term loan.
Regions Bank also served as an underwriter for the following CoreCivic bond offering:
Discerning the Company's Role in Current Credit Agreements
- April 2021: CoreCivic issued $450 million of bonds, with a maturity date of 2026. Regions Bank succeeded U.S. Bank as the trustee—or main bank—of the deal.
- October 2017: CoreCivic issued $250 million of bonds, with a maturity date of 2027. As part of a syndicate of banks, Regions underwrote an undisclosed proportion of these bonds.
- April 2016: GEO Group issued $350 million of bonds, with a maturity date of 2026. As part of a syndicate of banks, Regions Bank underwrote $10.5 million worth of these bonds.
In August 2022, GEO Group completed an offer to exchange/purchase certain outstanding notes, revolving credit loans, and term loans from certain lenders. As part of this agreement, GEO Group exchanged its outstanding bonds due 2023, 2024, and 2026 for newly issued bonds due 2028. SEC filings do not disclose whether Regions Bank is still involved in any of these agreements.
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 Regions Bank is still involved in this agreement.
In February 2021, following engagement with Alabama Students Against Prisons, Black Lives Matter, and other groups, Regions Bank announced that it would not extend additional credit to CoreCivic or provide the company with financing specifically for the construction of new prisons to be built in Alabama. However, in April 2021, the bank succeeded U.S. Bank National Association (owned by U.S. Bancorp) as the new trustee—main bank—of a $450 million bond agreement with CoreCivic. This agreement is set to mature in 2026.