Yvette Shields

CHICAGO – Illinois is asking underwriters vying for future senior manager work for advice on how best to capitalize on stopgap budget legislation that allows for the issuance of as much as $2 billion of refunding debt.

While Cook County, Ill. plots out its new money borrowing planned for later this year, finance officials will also work to close a looming $174 million gap.

Passage of a stopgap Illinois budget that keeps the spigot of aid at least partially flowing to the state's cash hungry public universities this year was overshadowed by fresh credit erosion.

The pleas from Illinois’ local governments, schools, and state agencies for at least a stop-gap spending plan are growing louder, as the state careens toward the start of a second fiscal year without a budget.

The Illinois Finance Authority greenlighted $1.4 billion of borrowing plans at its June meeting, led by Presence Health’s preliminary plans to restructure debt as it works to stave off further credit erosion.

Iowa will return to the market twice this month after a six-year absence to snag refunding savings.

Cook County, even paying the yield penalty most Illinois issuers face, landed $57 million in present value savings on a $285 million refunding in its first GO deal for more than two years..

The political and financial dysfunction of Illinois cost the state $12 million on Thursday’s $550 million bond pricing compared to its previous sale in January, according to a report from the University of Illinois Institute of Government and Public Affairs.

Illinois paid a steeper penalty to borrow Thursday after a fresh round of downgrades but a municipal market offering historically low yields helped disguise the spreads.

Kevyn Orr, who put Detroit into bankruptcy, said Chapter 9 is an option Chicago should have on the table as it steers its way through financial problems.

Illinois capital projects, including the Department of Transportation construction program, face imminent shutdown without at least a stopgap budget in place, officials in the administration of Gov. Bruce Rauner said.

The Federal Trade Commission plans to appeal a federal court judge’s refusal to block the merger of Illinois-based Advocate Health Care and NorthShore University Health System.

A suburban Chicago school district that ran into financial trouble after mishandling bond proceeds faces a Securities and Exchange Commission inquiry.

The Metropolitan Pier & Exposition Authority of Illinois absorbed a downgrade from S&P Global Services, reflecting a recent state government downgrade.

Minnesota State Colleges and Universities took a one-notch downgrade from Moody’s Investors Service to Aa3 over the weakened state of its revenue fund, which backs $333 million of debt.

As Illinois brings a $550 million bond deal to market, its prolonged political gridlock is fueling debate over the market’s role as a disciplinarian.

Mesirow Financial has appointed Blake Anderson to a newly-created position leading client portfolio strategy in its institutional sales and trading group.

Seven of Illinois’ public universities face a review for downgrade from Moody’s Investors Service.

Political gridlock in Illinois spurred two downgrades and a watch for the state’s already tarnished bond ratings as its bill backlog balloons and red ink swells with no end in sight to a year-old budget stalemate.

Former Illinois capital markets director John Sinsheimer has launched a financial consulting business geared toward helping organizations align their financial resources with their strategic plans.