Jefferson County, Ala., organizes $1.74 billion sale of sewer warrants

By Sheri Kasprzak

New York, Nov. 5 - Jefferson County, Ala., plans to price $1,738,408,714.95 of series 2013 sewer revenue warrants, according to a preliminary official statement.

The deal includes $375 million of series 2013A senior lien sewer revenue current interest warrants, $55,693,095.85 of series 2013B senior lien sewer revenue capital appreciation warrants, $69,308,272.15 of series 2013C senior lien sewer revenue convertible capital appreciation warrants, $750,155,000 of series 2013D subordinate lien sewer revenue current interest warrants, $71,935,073.95 of series 2013E subordinate lien sewer revenue capital appreciation warrants and $416,317,273 of series 2013F subordinate lien sewer revenue convertible capital appreciation warrants.

The warrants will be offered on a negotiated basis with Citigroup Global Markets Inc. as the senior manager. The co-managers are Merchant Capital LLC, Drexel Hamilton LLC, First Tuskegee Capital Markets, Securities Capital Corp., Jefferies & Co., Loop Capital Markets LLC, Morgan Stanley & Co. LLC, RBC Capital Markets LLC and Siebert Brandford Shank & Co. LLC.

The 2013A warrants are due Oct. 1, 2053. The 2013B warrants are due 2025 to 2036, and the 2013C warrants are due 2036 to 2042. The 2013D warrants are due 2015 to 2018 with term bonds due in 2023, 2042, 2051 and 2053. The 2013E warrants are due 2029 to 2038, and the 2013F warrants are due 2038 to 2050.

Proceeds will be used to refund and retire existing sewer revenue bonds, as well as to pay past due debt service on those refunded bonds.

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