CHICAGO — Genesee County, Mich. reportedly pulled a $54 million water and sewer bond deal Thursday due to lack of investor interest in the bonds.
The deal was set to price Thursday but by mid-day had been shifted to the day-to-day calendar, according to a source familiar with the transaction.
Genesee County, which is located near Detroit and includes Flint, was to be one of the first large Michigan issuers to come to market since Detroit declared bankruptcy on July 18. The county seat is Flint, about 65 miles from Detroit. The deal, rated A-plus by Standard & Poor's, was pulled because investors would not buy the debt, according to the Wall Street Journal.
Saginaw County, Mich., also has a deal set for next week, but as of Thursday had not yet set a firm date while the finance team tried to gauge interest after Genesee County's delay.
The team as of Thursday was trying to figure out "where the interest would be," according to a trader with the deal's senior manager, Fifth Third Securities.
"We're working on it — trying to get indications," the trader said.