Illinois issues first $1.5 billion of anticipated $6 billion in bonds to cut debt
Illinois took the first steps toward getting rid of approximately half of its $15 billion debt by issuing $1.5 billion in bonds on Tuesday, ahead of a plan to sell $4.5 billion more next week, according to a press release.
Illinois has been paying between 9 percent and 12 percent interest on late payments, according to the release. It issued three blocks of $500 million in general obligation bonds: two to Bank of America Merrill Lynch, one of which matures in 2018 and the other in 2029, and one to J.P. Morgan Securities, which will mature in 2019. The interest on the bonds is 3.5 percent.
“The state received strong bids today for its bonds and is pleased with the market’s favorable reception of the sale,” Scott Harry, director of the Governor’s Office of Management and Budget, said. “This bodes well for the state’s financing coming next week.”