Illinois Plans $350 Million Bond Sale After Pension Vote

Illinois plans to offer $350 million in general-obligation bonds on Dec. 12 in a competitive sale, according to John Sinsheimer, the state’s director of capital markets.

The deal will be Illinois’s first general-obligation offering since June. The Democrat-dominated General Assembly tomorrow will consider a solution to the nation’s worst-funded U.S. public pension system that’s designed to save $160 billion over 30 years.

Sinsheimer declined to comment on the pension measure’s impact on borrowing costs. The extra yield investors demand to own Illinois’s bonds instead of AAA munis is the highest among 17 states tracked by Bloomberg.

The longest-dated bonds would mature in 25 years, Sinsheimer said in an interview. The state will release preliminary offering documents tomorrow, he said.

To contact the reporter on this story: Brian Chappatta in New York at bchappatta1@bloomberg.net

To contact the editor responsible for this story: Stephen Merelman at smerelman@bloomberg.net

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