Illinois has postponed a $3.7 billion taxable bond issue, The Wall Street Journal reports. The bond issue, which was scheduled to be offered in the third week of February 2011, will now be sold in the fourth week, after the budget announcement by Governor, Pat Quinn.

Proceeds from the transaction will be used by the state to make its required pension payment for the year 2011. Morgan Stanley was appointed as the senior bookrunner on the deal.

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