CHICAGO - Chicago will remarket about $300 million of variable-rate third-lien general airport revenue bonds today, shedding the downgraded insurance from the 2005 floating-rate deal that had prompted investors to drop the bonds.
The bonds, issued for projects at O'Hare International Airport, carried insurance from CIFG Assurance NA, which lost its triple-A earlier this year along with the majority of monoline insurers. Dexia Credit Local, which provides a liquidity facility on the current issue and currently holds the bonds, will provide a letter of credit for the D tranche of $100 million. The C series, for $200 million, will carry an LOC from Landesbank Baden-Wurttemberg. Citi is serving as the remarketing agent.