State of Illinois prices $750
million in bonds
Send a link to a friend
[November 30, 2017]
Today the State of Illinois priced $750 million in
new money General Obligation bonds for 2018 capital expenditures.
Bond proceeds will be used to fund major capital construction
projects and finance information technology projects.
The General Obligation bonds were priced competitively in two
The $655,000,000 Series of December 2017A fixed-rate bonds with a
final maturity in 2042 will be used to fund major capital
construction projects. The 2017A bonds received eight bids and the
bonds were awarded to Bank of America Merrill Lynch with a true
interest cost of 4.33 percent.
The $95,000,000 Series of December 2017B fixed rate bonds with a
final maturity in 2027 will be used to finance information
technology projects. The 2017B bonds received 10 bids and the bonds
were awarded to Bank of America Merrill Lynch with a true interest
cost of 3.71 percent.
[to top of second column]
Today’s bond issue has an all-in borrowing cost for the combined
series of 4.29 percent. The bonds are being issued as fully
tax-exempt from federal taxation and are rated “BBB” by Fitch
Ratings, “Baa3” by Moody’s Investors Service and “BBB-” by S&P
“We are very pleased with the strong response that the State
received on today’s competitive bids,” said Scott Harry, director of the
Governor’s Office of Management and Budget. “These transactions will allow the
State to move forward with funding to address essential capital and
infrastructure needs at an attractive interest rate.”
Chapman and Cutler LLP and Hardwick Law Firm LLC are acting as co-bond counsel
for the State. Chapman and Cutler LLP is the State’s disclosure counsel. The
State’s financial adviser for the transaction is Sycamore Advisors LLC.
[Office of the Governor Bruce Rauner]