CHICAGO — Detroit Public Schools hopes to enter the market in the next two weeks to float a deficit bond issue that would eliminate two-thirds of its red ink.

The transaction will convert short-term notes issued for cash-flow purposes into longer-term bonds. The structure is modeled after a 2005 DPS transaction that converted $213 million of state aid notes into 15-year bonds.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.