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Detroit Water and Sewer Authority Washes Off Bankruptcy Stain

  • Authority sells about $324 million in debt for refinancing
  • Wells Fargo, Lord Abbett call deal's pricing impressive
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The Detroit Water and Sewerage Department is washing off the taint of its city’s notorious financial reputation as it refinances debt a year after emerging from the worst-municipal bankruptcy on record.

The $324 million in tax-exempt revenue bonds sold through the Michigan Finance Authority on Wednesday were priced at a top yield of 3.71 percent for securities maturing in July 2035, according to preliminary data compiled by Bloomberg. That’s about 1 percentage point more than 20-year benchmark municipal bonds.