What is the opportunity?
The Board is expected to come to market with $1.07 billion1 in tax-exempt Series 2015A and $30 million1 in taxable Series 2015B Systemwide Revenue Bonds. Proceeds from the sale will be used to finance approved capital projects at California State University facilities and to refund outstanding bonds to help lower borrowing costs. The bonds are rated Aa2 by Moody's and AA- by S&P2. They are secured by pledged and gross revenues, with gross revenues derived from housing, parking, student unions, student centers, and student health and continuing educations facilities on the 23 CSU campuses. Tuition and state appropriations are excluded from the pledged revenues designated for the repayment of the bonds. Please note the Board has no taxing power and the bonds are not a debt of the state of California.
The bond sale offers several attractive benefits for individual investors who are residents of California, including federal- and state-level tax-exemption on the Series 2015A Bonds, 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 July 131, 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 800-460-5848. 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.