What is the opportunity?
The San Francisco State Building Authority is expected to come to market with $103 million1 in Lease Revenue Refunding Bonds, 2015 Series A. The Oakland State Building Authority is expected to come to market with $59 million1 in Lease Revenue Refunding Bonds, 2015 Series A.
Proceeds from the sales will be used to refund outstanding debt, create a debt service reserve account for the 2015 bonds, and pay costs associated with the sale. The bonds are special obligations of each Building Authority, payable solely from pledged revenues and lease payments from the state. However, the state's taxing power has not been pledged as security for the bonds.
Both bond series are rated A1 by Moody's, A+ by S&P, and A by Fitch.2 The 2015 San Francisco Bonds and the 2015 Oakland Bonds are separately offered and separately secured under separate indentures and separate leases.
The bond sale offers several attractive benefits for individual investors who are residents of California, including federal- and state-level tax exemption, 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 November 16,1 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.