CHICAGO - Illinois will take bids Thursday on $1 billion of general obligation certificates - the first of two issues totaling $2.25 billion planned for the current fiscal year that won't be repaid until the next in an effort to relieve cash-flow pressures as the state grapples with a $12 billion deficit.

This week's note deal will include two tranches, each for $500 million, with one maturing April 26, 2010, and the other May 20, 2010. The winning bidder on the later tranche must cover issuance costs, according to the offering documents on the transaction. Katten Muchin Rosenman LLP is bond counsel.

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