Chicago Schools' Wrecked Finances on Display Before Deal
- Board of Education plans $875 million of genearal obligations
- Standard & Poor's cuts ratings, keeps bonds under review
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Chicago schools are borrowing to pay mounting debt bills and fund capital projects as the district’s liquidity deteriorates and its credit rating tumbles.
The Chicago Board of Education will sell $875 million of bonds on Jan. 27, according to Bloomberg data from J.P. Morgan, an underwriter on the deal. The deal is made up of $796 million of tax-exempt securities and $79 million of taxable debt, according to bond documents. The proceeds will cover capital projects, convert variable rate debt to fixed, fund swap termination payments and pay debt-service bills, bond documents show.