CitiGroup hired by JeffCo to sell $1.9B in refinanced sewer debt

CitiGroup has been hired to help Jefferson County sell $1.9 billion in bonds to refinance its sewer debt.

The Jefferson County Commission has voted to hire CitiGroup Global Markets to sell $1.9 billion in refinanced sewer debt.

The refinancing is part of the county's official plan to exit bankruptcy, as we've previously noted.

According to Bloomberg, CitiGroup offered to underwrite the debt for $7 per $1,000 of bonds and the county has budgeted $19 million for banking fees related to the deal.

As Fox 6 reports, the county has also hired Public Resources Advisory Group as a financial consultant to ensure the county and taxpayers are getting a good deal.

The report also noted that JP Morgan, which was one of the county's largest sewer creditors, was excluded ? along with Goldman Sachs ? from consideration in the refinancing due to their past involvement with the county.

That's a sensitive situation for the county, because it was a series of bond agreements that heavily contributed to its bankruptcy and led to the indictments of several public officials.

The county's refinancing plan has received its share of criticism, including a University of Alabama professor who told us it could create financial difficulties down the road.

Ty West is the managing editor for the Birmingham Business Journal. Click here to follow him on Twitter.

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