The sale of an $875 million bond issue designed to relieve a cash flow crunch at Chicago Public Schools was postponed today amid renewed investor unease over the district's financial condition.Chicago public education is : junk.
"At the recommendation of our financial advisers and in accordance with common practice, CPS is evaluating the timing of the sale of these bonds on a day-to-day basis. The situation is dynamic, and giving investors more time will be of benefit to CPS," the district said in a statement attributed to finance chief Ron DeNard.
A CPS spokeswoman did not immediately return a call seeking further comment.
The move isn't expected to "materially alter" the expected closing date of the issue or CPS' funding plan, according to a CPS insider. The offering is designed to repay the district's operating fund for capital expenses drawn from the fund and provide $206 million to restructure debt and lower borrowing costs.
The Bond Buyer reported that a pre-marketing scale released Monday by J.P. Morgan offered steep yield premiums of more than 5 percentage points over the Municipal Market Data's top-rated benchmark.
Wednesday, January 27, 2016
CPS postpones $875 million bond sale
Crain's Chicago Business reports: