What is the opportunity?
The State of California (the "State") is issuing its $2.4 billion1 General Obligation Bonds for the purpose of paying all or a portion of the costs of various State projects, to refund certain outstanding bonds and to pay certain costs of issuing the 2017 Bonds.
The 2017 Bonds are direct general obligations of the State to which the full faith and credit of the State are pledged to pay principal and interest on the 2017 Bonds when due.
These bonds are rated "Aa3" by Moody's and "AA-" by S&P.2
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.
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 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 March 6,1 although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders onlineLog In Required 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 AlertsLog In Required and see our Municipal Bond New Issue Offerings.