April 26, 2021 Group Watch: AL Prison Project Loses Two Financiers
Two financiers have withdrawn from underwriting bonds for two prisons planned by Tennessee-based CoreCivic. One, London-based Barclays, stepped out amid criticism that the bank was breaking a promise to stop supporting for-profit prison companies. The bank reported that its objective was to enable the state to improve its facilities, but realized the complexity and importance of the overall issue. Ohio-base KeyBanc Capital Markets also pulled out of the deal without comment. Alabama would lease the buildings and property from CoreCivic and Alabama Prison Transformation Partners, a group that plans to build the Bibb County facility. The state would provide the staffing. Officials hoped to start construction of the prisons this year, with inmates transferred starting in 2025. The financing issue could delay the selling of the bonds to fund the project.
