What is the opportunity?
The Commission is issuing its $158,760,0001 Sales Tax Revenue Bonds (Limited Tax Bonds), 2017 Series A, in order to: (i) pay a portion of the costs of the I-15 Express Lanes Project, including issuance costs relating to the TIFIA Loan; (ii) pay a portion of the costs for the Riverside SR-91 Corridor Improvement Project; (iii) retire all or a portion of the outstanding Notes; and (iv) pay the costs of issuance of the 2017 bonds.
The Commission plans and implements transportation and transit improvements, assists local governments with money for local streets and roads, helps smooth the way for commuters and goods movement, and ensures that everyone has access to transportation.
The 2017 Bonds are limited obligations of the Commission payable from and secured solely by a pledge of the Revenues (which is defined in the Preliminary Official Statement and which primarily consists of the receipts from the imposition in the County of Riverside, California of a ½-cent sales tax that became effective on July 1, 2009 (the “Sales Tax”), less certain administrative fees paid to the California State Board of Equalization), as described in the Preliminary Official Statement. The Sales Tax was approved by more than a two-thirds vote of the electorate of the County of Riverside on November 5, 2002 and is scheduled to expire on June 30, 2039.
Neither the faith and credit nor the taxing power of the county of Riverside, the state of California, or any political subdivision or public agency thereof, other than that of the commission to the extent of the pledge of the revenues, is pledged to the payment of the principal of or interest on the 2017 bonds.
The Bonds are rated AA+ by S&P and AA by Fitch2.
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 July 11,1 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.