CHICAGO - Illinois on Thursday will competitively sell $1.4 billion of general obligation cash-flow certificates that mature next year in an attempt to whittle down a record backlog of $4 billion of unpaid bills.

The notes mature in three tranches in 2009 - $400 million due April 24, $600 million due May 25, and the remaining $400 million due June 24, according to the offering statement. The deal is the first certificate issue since 2003 for cash-flow purposes, although in recent years the state has used certificates to fund payments under its hospital assessment tax program.

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.