Wednesday, January 27, 2016

CPS postpones $875 million bond sale

Crain's Chicago Business reports:
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.

"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.
Chicago public education is : junk.