The city of Chicago is more than doubling a borrowing plan to cover the cost of legal settlements and judgments. The borrowing is part of a $1.2 billion general obligation (G.O.) bond offering expected to hit the market next week. According to a December summary from S&P and first reported by Bond Buyer, $225 million from the bond proceeds will be used to fund settlements and judgments–$125 million more than budget officials initially planned. Investors are also wrestling with whether or not Chicago’s debt should be priced at junk interest rates, as at least one rating agency contends.

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