Alabama's Jefferson County is planning to sell $1.74 billion of sewer revenue debt during the week of Nov. 18 to complete its exit from bankruptcy, Reuters reported yesterday. The deal through Citigroup will be used to replace $3.1 billion of distressed sewer debt that pushed the county into chapter 9 municipal bankruptcy in November 2011. The county commission and the creditors agreed last month to a revised recovery plan that will pay about 53 cents on the dollar to creditors of the county's sewer system. About $500 million of senior lien sewer revenue current interest and capital appreciation warrants will be insured by Assured Guaranty, according to the deal's preliminary official statement. The deal, which also includes $1.24 billion of subordinate lien warrants, is structured with serial bonds with a maximum maturity of 2050 and term bonds with a top maturity of 2053.
