The State of Oregon (the "State") is expected to come to market with $518 million1 General Obligation Bonds (the "Bonds").
The Bonds are being issued to pay all or a portion of the costs of various State projects and to pay costs of issuing the 2019 Bonds, as described in the Preliminary Official Statement.
The Series A, Series B, and Series C Bonds (known as "the 2019 State Project Bonds") are being issued to (i) acquire, construct, remodel, and repair property owned by the State, and (ii) pay costs of issuing the 2019 State Project Bonds.
The Series D Bonds (known as the "2019 State Grant Program Bonds") are being issued to (i) finance all or a portion of the State share of costs to plan and implement seismic rehabilitation of public education buildings, (ii) finance all or a portion of the State share of costs to plan and implement seismic rehabilitation of emergency services buildings, (iii) provide Oregon school districts with matching grant funds to finance capital costs of certain School Districts, and (iv) pay costs of issuing the 2019 State Grant Program Bonds.
The Bonds are direct general obligations of the State, and the full faith and credit and taxing power of the State are pledged to pay the principal of and interest on the 2019 Bonds when due. The ad valorem taxing power of the State is not pledged to pay the 2019 Bonds.
The bonds are expected to be rated AA+, Aa1, and AA+ by S&P, Moody's, and Fitch, respectively.2
The bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement.
The bond sale offers attractive benefits to individual investors, including prices and yields that match those available to institutional investors and the potential for stable income through the call dates. Series B and C bonds are federally taxable, while Series A and D bonds are federally tax-exempt. Oregon residents enjoy state tax-exemption on the bond coupon payments.
How to place an order
The offering is expected to price the week of February 11, 20191 although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online or by calling a Fidelity representative at 800-544-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts and see our Municipal Bond New Issue Offerings.