Chicago weighs $4b of debt for O’Hare airport upgrades

Chicago Mayor Brandon Johnson is seeking approval this week to issue several billion dollars in bonds to modernize O’Hare International Airport as well as convert two office buildings into affordable apartments. The city council’s finance committee on Monday voted on a series of proposals from the Johnson administration. The proposals could add up to more than $4b in debt. The plans still need approval from the full city council, which next meets on June 12. The fortunes of the nation’s third-largest city have risen in tandem with the state of Illinois in recent years. Chicago bonds have been rallying, despite a surge in municipal issuance, including in the airport sector. An index of BBB rated municipal bonds, of which Chicago is the third-biggest issuer, has gained about 0.6% this year compared to losses in the broader market. Airport debt makes up the bulk of the proposals. The committee approved a plan to issue up to $3b in general airport senior lien revenue bonds and passenger facility charge revenue bonds for O’Hare capital improvements. The bonds would be a mix of new money and refinancings in three different transactions from July through November, according to the city’s presentation at the meeting on Monday. The panel also held a hearing on Monday as part of the renewal of an authorization for up to $1b in short term line of credit or commercial paper notes to allow tax-exempt spending to continue for O’Hare.<br/>