CHICAGO — Detroit will enter the market Thursday with $250 million of state aid limited-tax general obligation bonds that the city will use to erase a chunk of its accumulated deficit.

The debt features a pledge of state aid aimed at attracting investors who might be leery of buying debt from the below-investment-grade rated city. The revenue stream is derived from a 6% Michigan statewide sales tax and is expected to provide strong debt service coverage over the life of the bonds, credit analysts said.

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