What is the opportunity?
The state of California will come to market with $1.9 billion1 in general obligation bonds. The proceeds are split between $790 million of "New Money Bonds" that are being issued to fund projects under certain of the Bond Acts (please see the POS for specific projects) pay certain outstanding general obligation commercial paper notes of the state as they mature and $1.1B of "Refunding Bonds" to current or advance refund certain of the State's general obligation bonds for debt service savings.
The bonds are direct general obligations of the state to which the full faith and credit of the state are pledged. The principal of and interest on the bonds are payable from any moneys in the General Fund of the State, subject only to the prior application of such moneys to the support of the public school system and public institutions of higher education.
The bond sale offers several attractive benefits for individual investors who are residents of California, including the potential for stable, tax-exempt income; priority allocation when bonds are issued; and prices and yields that match those available to institutional investors.
How to place an order
Individual investors may place orders Tuesday, March 3. The sale may close early, due to market conditions or because all bonds may be allocated.