The State is expected to come to market with $2.5 billion1 in Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds, (collectively, the "Bonds".)
Proceeds of the Bonds will be used to finance or refinance all or a portion of certain projects of the State of California, including the refunding of the Refunded Bonds, as defined in the Preliminary Official Statement.
The Bonds are general obligations of the State of California to which the full faith and credit of the State is pledged. The principal of and interest on all State general obligation bonds, including the Bonds, are payable from any moneys in the General Fund of the State, subject under State law only to the prior application of such moneys to the support of the public school system and public institutions of higher education. On any debt service payment date, all general obligation bonds, including the Bonds, have an equal claim on moneys then in the General Fund of the State Treasury for payment of debt service. In addition to the Bonds, the State expects to issue additional general obligation bonds before May 15, 2026. The timing and the principal amount of any sale or issuance of additional general obligation bonds and the refunding of any outstanding general obligation bonds are all subject to change based upon legal, market and other factors. See the Preliminary Official Statement for more details.
Certain maturities of the bonds are subject to redemption prior to maturity as described in the Preliminary Official Statement. The bonds are rated "Aa2" by Moody's, "AA-" by S&P", and "AA" by Fitch.2
Key benefits
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. And, for State of California residents, federal and State of California tax-exemption on the bond coupon payments.
How to place an order
The offer is expected to price the week of March 9, 20261, 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.
