Bankrupt Detroit plans to sell $185 million in bonds to improve street lighting, according to a Standard & Poor’s analyst. The issue will test investor willingness to lend to the city after some agreed in April to accept about 74 percent of what they were owed.
The Michigan Finance Authority will offer the bonds, secured by a utility users tax, on behalf of Detroit’s Public Lighting Authority on June 25, analyst Jane Ridley said. The debt is rated A-, the seventh-highest investment grade, according to an S&P report.