Detroit Water And Sewer Bond Tender Appears To Fall Short
According to tender agent data, the holders of $5.2 billion of Detroit water and sewer revenue bonds turned in only 28.34 percent of the debt for repurchase before Thursday's expiration of the city's tender offer. Real-time data posted online by Bondholder Communications Group showed nearly $1.47 billion of senior and second lien bonds were tendered by the 5 p.m. deadline set by the city when it announced the offer on Aug. 7. Robert Apfel, Bondholder Communications president, said official results would be announced by Detroit on Friday. The bankrupt city must now determine if enough bonds were tendered and if sufficient savings would be generated by refinancing the debt.
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