In: Finance
Find a recent article from any Illinois municipality or county discussing some type of debt issuance or restructuring. Discuss why it was done, a structure of the debt, details on their credit rating, a source for repayment, etc. PLEASE PROVIDE CORRECT APA CITATION USED and only focus on Illinois state.
The state of Illinois completed a debt issuance in October 2017 and the total amount of this debt issuance stood at $6 billion. Of this $4.5 billion worth of bonds were issued to investors who were demanding hefty yields. To meet their demands the bonds were re-priced and this boosted the yields by as much as 15 basis points. Further $1.5 billion was raised through issue of bonds through competitive bidding.
This debt issuance was done to pay off all the unpaid bills that were outstanding for the state of Illinois.
Structure of the total debt of $6 billion comprised of $4.5 billion worth of tax-exempt general obligation bonds. The balance $1.5 billion was raised through bonds issued through competitive bidding.
With regards to their credit rating these bonds were rated at Baa3 by Moody’s and at BBB-minus by S&P.
Source of repayment will be better management of the state’s finances going forward and a proposed marginal income tax hike.
APA citation of the article:
Pierog Karen (2016). Repricing boosts yields on Illinois’ $4.5 billion bonds. Retrieved from https://www.reuters.com/article/illinois-bonds/update-3-repricing-boosts-yields-on-illinois-4-5-bln-of-bonds-idUSL2N1N00YT