Allentown, Pa., and the Lehigh County Authority on Wednesday closed the public works agency’s $211 million takeover of the city’s water and sewer system.

Under the deal, which drew widespread attention from the capital markets, the city will cover its pension liability with the upfront payment. Allentown, the 119,000-population seat of Lehigh County, will also receive a $500,000 annual royalty under the 50-year agreement.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.