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San Diego County Building Authority, Lease Revenue Bonds

We are pleased to announce that Fidelity Capital Markets has been chosen as a co-manager for the San Diego Regional Building Authority's upcoming Lease Revenue Refunding Bond sale.

What is the opportunity?

The San Diego Regional Building Authority is expected to come to market with $108 million1 in Lease Revenue Refunding Bonds, Series 2016A. Proceeds from the sale will be used to refund certain bonds outstanding (see Preliminary Official Statement for details), fund a common reserve account for the Series 2016A Bonds and any series of additional bonds issued pursuant to the Indenture and secured by the Common Reserve Account, and pay the costs of issuance.

The Bonds are limited obligations of the Authority, payable solely from certain funds and accounts pursuant to the indenture and revenues derived from Rental Payments for the use and possession of the Leased Property. Neither the full faith and credit of the Authority nor the County is pledged for the payment of the interest on or principal of the Bonds and no tax or other source of funds other than the Revenues is pledged to pay the interest on or principal of the Bonds. The Authority has no taxing power.

Key benefits

The bond sale offers attractive benefits to individual investors who are residents of the State of California, including federal and state tax exemption on the interest payments, prices and yields that match those available to institutional investors, and the potential for stable income.

How to place an order

The offering is expected to be priced the week of February 1,1 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 lock 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.

Additional resources

Municipal Bonds
Review the risks and benefits of investing in municipal bonds.

California State Treasurer
Learn more about how to invest in California bonds and notes.

Municipal Bonds: Understanding Credit Risk (PDF)
In this SEC investor bulletin, learn more about assessing credit risks when purchasing municipal bonds.

MSRB—Risks and opportunities of interest rate movements (PDF)
Read about the impact of market interest rate movement on municipal bond prices and yields from the MSRB Education Center.

This information does not constitute an offer of any securities for sale.
1. Preliminary, subject to change
Interest income earned from tax-exempt municipal securities generally is exempt from federal income tax, and may also be exempt from state and local income taxes if you are a resident in the state of issuance. A portion of the income you receive may be subject to federal and state income taxes, including the federal alternative minimum tax. Before making any investment, you should review the official statement for the relevant offering for additional tax and other considerations.
The municipal market can be adversely affected by tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets or for all account types. Tax laws are subject to change and the preferential tax treatment of municipal bond interest income may be revoked or phased out for investors at certain income levels. You should consult your tax adviser regarding your specific situation.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties.
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Moody's

an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk

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Standard & Poor's (S&P) Corporation

an independent company that provides investors with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions

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yield

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close