What is the opportunity?
The Regents of the University of California are expected to come to market with $842 million1 in General Revenue Bonds.
The Regents plan to issue four series of Bonds. Fidelity will be accepting orders for three series in this offering: Series AR Bonds, Series AS Taxable Bonds, and Series AU Taxable Fixed Rate Notes.
These General Revenue Bonds will be used to finance or refinance all or a portion of projects on certain campuses of the University of California. In addition, these bonds will be used to finance projects critical to the university's mission of education and research.
The General Revenue Bonds are secured by a pledge of the university's general revenues (i.e., tuition, fees, net sales, and other revenues). These bonds will not constitute a liability of or a lien upon the funds or property of the State of California or of the Regents, except to the extent pledged as general revenues. The Regents have no taxing power.
As further described in the preliminary official statement, Series AR, Series AS, and Series AU are subject to optional redemption, and Series AR is subject to mandatory sinking fund redemption.
The Series AR bonds are federally tax-exempt and tax-exempt in the State of California, whereas Series AS bonds and Series AU Notes are taxable. The Bonds are rated Aa2 by Moody's, AA by S&P, and AA by Fitch.2
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. Interest on the Series AR bonds is exempt from federal income tax and, for California residents, exempt from state income tax.
How to place an order
The offering is expected to price the week of April 4,1 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.