What is the opportunity?
The Corporation is expected to come to market with $800 million1 in Lease Revenue Refunding Bonds.
The proceeds of the Bonds will be used to refund bonds previously issued to acquire and construct Figueroa Plaza, a police headquarters building, and various equipment and capital projects.
The Lease Revenue Bonds are payable solely from Basic Lease Payments made pursuant to the 2016-A and 2016-B Lease Agreements. The bonds are limited obligations of the corporation and are payable solely from the revenues and amounts on deposit in the funds and accounts established under the indenture with respect to each series (other than amounts on deposit in the rebate funds). The bonds do not constitute a debt or liability of the city or of the state of California and neither the faith and credit of the city or of the state are pledged to the payment of the principal of or interest on such bonds.
Traditionally, municipal bonds will be subject to optional call features, and term bonds will generally have a Mandatory Sinking Fund feature. Please review the structure on the day of the pricing before placing an order.
These bonds are rated A+ by S&P and A+ by Fitch.2
The bond sale offers attractive benefits to individual investors, including: prices and yields that match those available to institutional investors; the potential for stable income through the call dates; and, for California residents, federal and state tax-exemption on the bond coupon payments.
How to place an order
The offering is expected to price the week of May 16,1 although market conditions or the discretion of the issuer may affect this timeline or the amount of bonds offered. Individual investors can place orders online or by calling a Fidelity representative at 800-554-5372. To stay up-to-date on pricing, credit rating changes, and more, please sign up for Fidelity Alerts or visit our Municipal Bond New Issue offerings page.