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Item 3 — Quantitative and Qualitative Disclosures About Market Risk
Corecivic, Inc. · 10-Q · Q2 FY2026 · Period ended Jun 30, 2026
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Our primary market risk exposure is to changes in U.S. interest rates. We are exposed to market risk related to our Bank Credit Facility because the interest rates on loans under the Bank Credit Facility are subject to fluctuations in the market. If the interest rate for our outstanding indebtedness under the Bank Credit Facility was 100 basis points higher or lower (but not less than 0%) during the three and six months ended June 30, 2026, our interest expense would have been increased or decreased by $1.3 million and $2.2 million, respectively.
As of June 30, 2026, we had $238.5 million of the 4.75% Senior Notes and $500.0 million of the 8.25% Senior Notes outstanding. We also had $131.2 million outstanding under the Kansas Notes with a fixed interest rate of 4.43%. Because the interest rates with respect to these instruments are fixed, a hypothetical 100 basis point increase or decrease in market interest rates would not have a material impact on our financial statements.
We may, from time to time, invest our cash in a variety of short-term financial instruments. These instruments generally consist of highly liquid investments with original maturities at the date of purchase of three months or less. While these investments are subject to interest rate risk and will decline in value if market interest rates increase, a hypothetical 100 basis point increase or decrease in market interest rates would not materially affect the value of these instruments.