CHICAGO — With its auction-rate debt issues resolved, the Chicago Public Schools is now turning its attention to its insured variable-rate demand portfolio with an eye towards reducing its interest rate risks with the refunding of $130 million of general obligation debt on Tuesday.

The issue, which includes two tranches of $65 million each, will be sold by the Chicago Board of Education with Northern Trust Securities Inc. serving as lead manager on one and BMO Capital Markets GKST Inc. serving in the same role on the other. Harris NA, the Chicago commercial banking arm of BMO, and Northern Trust Co. will each provide a direct-pay letter of credit for the securities.

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