Jefferson County standby warrant purchase agreement default forbearances extended to Oct. 31

By Caroline Salls

Pittsburgh, Oct. 14 - Jefferson County, Ala., secured further extensions of the forbearance agreements under the standby warrant purchase agreements related to the county's sewer revenue warrants and general obligation warrants, series 2001-B, according to notices released Tuesday.

The default forbearances were extended to Oct. 31 from Oct. 8.

As previously reported, Jefferson County entered into a standby warrant purchase agreement with liquidity providers JPMorgan Chase Bank, NA and Bayerische Landesbank, New York Branch in connection with the general obligation warrants to provide a source of funds for the payment of the purchase price of warrants that are the subject of an optional or mandatory tender.

Meanwhile, the liquidity facility was provided by JPMorgan Chase Bank, the Bank of New York Mellon, Syncora Guarantee and Financial Guaranty Insurance Corp. in connection with the sewer revenue warrants.

Under the liquidity facilities, the county is required to redeem the tendered warrants in six equal installments beginning six months from the date of tender if the warrants have not been remarketed before the redemption dates, and the first redemption was scheduled for Sept. 15.

The county's failure to redeem the warrants on Sept. 15 triggered the events of default.

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