Detroit gets needed 51% consents to amend sewage disposal system bonds

By Susanna Moon

Chicago, Dec. 2 – City of Detroit said it extended the consent solicitation to amend its sewage disposal system bonds by several hours.

The solicitation will now end at 11:30 p.m. ET on Nov. 24, according to a notice, extended from 5 p.m. ET on Nov. 24. Holders must be of record as of Nov. 10.

As of Wednesday, Detroit had secured the needed 51% of consents to amend the ordinance, according to a separate notice.

Detroit began soliciting consents on Nov. 12 to amend its sewage disposal system bonds that include series 1998A, 1998B, 1999A, 2001B,2001C-1, 2001C-2, 2001D-2, 2001E, 2003A, 2003B, 2004A, 2005A, 2005B, 2005C, 2006A, 2006B, 2006C, 2006D and 2012A bonds.

Specifically, the city is asking holders to consent to an amendment to the current authorizing ordinance for sewage disposal system bonds, a second supplemental indenture to the current trust indenture for sewage disposal system bonds and the obligor on the outstanding bonds being changed from Detroit to the Great Lakes Water Authority.

As previously announced, the amendments required consents from holders of 51% of the principal amount outstanding.

Citigroup Global Markets Inc. (attn.: Mike Leffler, mike.leffler@citi.com, 212 723-4453) is the consent solicitation manager.

U.S. Bank NA is the trustee for the bonds.

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