Tags: Chicago | bond | sale | rating

Chicago Lifts Size of Bond Sale to $780 Million After Rating Cut

Tuesday, 11 Mar 2014 12:08 PM

Chicago increased the size of its planned offering this week of tax-exempt and taxable general-obligation bonds to $780 million from an initial $405 million, according to data compiled by Bloomberg.

The third-most-populous U.S. city is preparing to issue general obligations for the first time since 2012. Its rating was cut one step to Baa1 on March 4 by Moody’s Investors Service, which cited “massive and growing unfunded pension liabilities, which threaten the city’s fiscal solvency.”

The offering is coming during the busiest period of debt issuance since December, Bloomberg data show. Puerto Rico increased the size of its deal to $3.5 billion from $3 billion today, and California set initial yield levels on about $1.7 billion of bonds, up from a planned $1.6 billion sale.

Chicago tripled its debt load from 2002 to 2012. A $590 million additional payment for retirement obligations is due next year unless state lawmakers step in to restructure the pension funds.

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Chicago increased the size of its planned offering this week of tax-exempt and taxable general-obligation bonds to $780 million from an initial $405 million, according to data compiled by Bloomberg.
Chicago,bond,sale,rating
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2014-08-11
Tuesday, 11 Mar 2014 12:08 PM
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