CPS Statement on Today’s Bond Sale 

Wednesday, February 3, 2016

For more information, contact:
CPS Office of Communications
Phone: 773-553-1620

CPS Senior Vice President for Finance Ron DeNard issued the following statement regarding CPS’ bond sale of $725 million in tax-exempt bonds today.

Statement (DeNard):
“Borrowing money was never a decision that we took lightly and though some wanted our efforts to fail, CPS needed to move forward in order to keep our doors open so we could educate our children. Along with the tough cuts announced yesterday and earlier this year, the sale of these bonds will produce sufficient proceeds to mitigate our cash flow challenges through the end of the fiscal year. CPS faces many financial difficulties ahead, but we are committed to working with CTU on a long term contract and the State to finally address the inequitable state funding for CPS that is driving the District’s budget imbalance.”


CPS will make its February 15 debt service payments. 
CPS priced $725 million in tax-exempt bonds.
These bonds will largely reimburse the operating fund for expenses that the District has already paid, including capital expenses.
The bonds include $206 million of debt restructuring to provide immediate budgetary relief in FY16.
CPS will postpone its plan to convert variable-rate debt to fixed-rate debt.
CPS will postpone reimbursing the general operating fund for some of the swap termination fees.

Page Last Modified on Wednesday, February 03, 2016