CPS Financial Mess Continues

Yesterday's monthly CPS Board of Education meeting produced another bombshell. The financial guru's had to put off the $875 million bond sale. The interest rate to be paid on the enormous bond sell had been set at 7.7%. It would be interesting to know exactly why the bond sale was pulled from the market. Who knows

Perhaps the district's underwriters couldn't lure enough investors into the deal. No doubt the current financial condition of the district weighed heavily into the matter. It might well be that potential investors simply don't think that CPS will be able to meet its principal and interest payments going forward. Others might believe that CPS should go after a smaller bond sale. After all, part of the bond sale would have been earmarked to refinance debt.

Bottom line, it is never good, according to the experts, to have a bond sale ready to go and then to withdraw it. Just more additional financial chaos.

Dick