Arizona County Sees Cash in Louisiana Prison Bonds: Muni Credit

Arizona’s La Paz County, whose residents earn about 20 percent less than the state average, is generating cash by lending its name as the issuer of municipal bonds for a Louisiana prison operator.

A La Paz authority that finances industrial development stands to receive $70,000 annually by selling debt this month for LCS Corrections Services Inc., which has eight prisons in Alabama, Louisiana and Texas at least 1,200 miles (1,931 kilometers) to the east. The county has no obligation for the $297 million of securities, which LCS is using to pay off bank debt and lower interest costs, said Lori Sullivan, managing director at Raymond James Financial Inc., the lead underwriter.