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Barclays Drops Prison Bond Deal at Last Minute After Furor

  • Bond proceeds intended to build two prisons in Alabama
  • Decision to pull out of deal is highly unusual in muni market
Barclays Plc headquarters in London.
Photographer: Hollie Adams/Bloomberg
Updated on

Barclays Plc pulled out of its role as the lead underwriter of a municipal-bond sale that was set to build prisons for CoreCivic Inc. after criticism that the bank was backtracking on a pledge to no longer provide financing to for-profit jail companies.

KeyBanc Capital Markets, another manager, also said it was resigning from the transaction.