Alabama Seeks Bank Assurance on Prison Bond After Barclays Exit

Alabama is looking for banks willing to underwrite a large bond sale for controversial prison projects and is asking firms’ senior management to provide assurances that they won’t drop out in the face of any activist backlash.

In November, the Alabama Corrections Institution Finance Authority issued a request for proposals to underwriting firms for the sale of as much as $785 million of bonds to finance prisons, according to a document obtained through a public records request. Submissions were due on Dec. 15.

The unusual demand for assurances comes after a bond financing for Alabama prison projects was scuttled earlier ...