Post by Logan on Jan 28, 2016 1:10:44 GMT -6
Chicago Public Schools held off on a planned $875 million borrowing deal Wednesday as investors take a hard look at whether to bet on the cash-strapped district's bonds.
"We were asked by a couple of investors to just wait a couple of days and give them more time," Carole Brown, the city's chief financial officer, said in a midday conference call with reporters. "We are still optimistic that this transaction will go forward and will go forward in the next days."
The bonds come with significant risk to any potential buyer. As of this month, CPS is rated three levels below junk status by all three major rating agencies.
An analysis by Hiawatha, Iowa-based Merritt Research Services shows that no state or local government in the continental U.S. has done such a large deal while possessing such a low debt rating in at least the past decade.
Read more: www.chicagotribune.com/news/ct-chicago-school-board-meets-met-0128-20160128-story.html
"We were asked by a couple of investors to just wait a couple of days and give them more time," Carole Brown, the city's chief financial officer, said in a midday conference call with reporters. "We are still optimistic that this transaction will go forward and will go forward in the next days."
The bonds come with significant risk to any potential buyer. As of this month, CPS is rated three levels below junk status by all three major rating agencies.
An analysis by Hiawatha, Iowa-based Merritt Research Services shows that no state or local government in the continental U.S. has done such a large deal while possessing such a low debt rating in at least the past decade.
Read more: www.chicagotribune.com/news/ct-chicago-school-board-meets-met-0128-20160128-story.html