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Alabama Sells Munis for Prisons After Deal Cut by $216 Million

  • Issue was reduced to about $509 million after tepid demand
  • Activists have been critical of the proposal for new prisons
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Munis Look Solid Amid Rate Volatility: Truist's Hughey
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Alabama wrapped up a $509 million sale of municipal bonds on Wednesday to finance new correctional facilities in the state, completing the transaction despite weak demand that caused underwriters to shrink the offering by more than $200 million. 

The deal was originally supposed to total $725 million, and was slashed as it struggled to lure buyers, according to people familiar with the matter. The reduction came mainly in longer-dated segments, where the 30-year maturity was cut to roughly $71 million from the $199 million originally offered.