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Article: Jersey City, N.J. Council approves sale of $45 million of delinquent tax liens.
- Article from:
- The Bond Buyer
- Article date:
- June 21, 1993
- Author:
CopyrightCOPYRIGHT 1993 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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JERSEY CITY, N.J. - The Jersey City city council Friday approved a plan to sell $45 million in delinquent tax liens to First Boston Corp.,, in exchange for about $25 million in cash and $20 million in the form of a subordinated note.
The council approved the measure by a 5-to-1 margin, marking the final step in a months-long process of securing approvals needed to get the unique financing off the ground.
First Boston will raise the cash payment by selling $32 million in taxable bonds, backed by the tax liens. A portion of the proceeds will be used to establish a debt service reserve fund and pay fees related to the sale. The bonds will be rated by Fitch ...