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Coming Soon: New Detroit Bond Rating

Detroit city officials are waiting for rating agencies to determine essentially how much it will cost to borrow $245 million for the so-called “exit financing” that was approved as part of Detroit’s post-bankruptcy financial plan.

The city’s original plan called for borrowing an additional $30 million, but the city was able to lower that amount because of fee reductions from lawyers and consultants involved with the bankruptcy case, says spokesman John Roach.

City Finance Director John Naglick says he’ll know within a day what rating the bonds will have. That rating will help determine the interest rate the city will pay investors who purchase the bonds. Barclay’s Bank financed the bonds during the bankruptcy with the agreement the city would re-sell them on the private market this year.

Naglick says the bonds will be publicly sold on Aug. 19. Before then, Mayor Mike Duggan will attend information sessions for potential investors. One will be held Aug. 11 in Detroit, and another on Aug. 13 in New York City.

Image credit: Sandra Svoboda

This post is a part of Next Chapter Detroit.

 

Next Chapter Detroit is a place to explore and understand the city’s bankruptcy, its impact on people and neighborhoods and its long-term implications. Powered by coverage and conversations from the media outlets of the Detroit Journalism Cooperative, Next Chapter Detroit provides fact-based reporting from trusted sources and opportunities for citizen engagement and is presented by WDET, Detroit's Public Radio Station.


Presented by WDET in partnership with the Detroit Journalism Cooperative.

Support for this project comes from the John S. and James L. Knight Foundation, Renaissance Journalism’s Michigan Reporting Initiative and the Ford Foundation.

 

  

 

About the Author

Sandra Svoboda

Special Assignments Manager

Recovering Bankruptcy Reporter/Blogger looking forward to chronicling regional revitalization on-air, digitally and through community engagement.

ssvoboda@wdet.org   Follow @WDETSandra

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