Detroit is eyeing savings from a just-launched redemption offer for bonds it issued in 2014 as part of the city’s exit that year from its historic bankruptcy, municipal officials said on Tuesday, Reuters reported. The city is targeting $131 million of its nearly $632 million of series 2014B financial recovery bonds that mature in 2044 with a tender offer that expires Dec. 3. The move follows the redemption of $70 million series 2014C bonds earlier this year. The tender offer’s selling range is between $85 and $89 per $100 of the bonds’ par amount, according to city documents. Detroit issued the bonds as part of its federal court-approved plan to exit what was then the biggest U.S. municipal bankruptcy, which allowed the city to shed about $7 billion of its $18 billion of debt and obligations. Debt proceeds were used to fund settlements with bond insurers, interest-rate swap providers, city pension funds, as well as to raise money for capital projects.
