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2 New Offerings: 2015 San Francisco and Oakland State Building Authority Lease Revenue Refunding Bonds

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

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.

Key benefits

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 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.

Investing in a volatile bond market
Get the latest insights on the bond market, outlook for future rates, and investment strategies from Fidelity Viewpoints®.

This information does not constitute an offer of any securities for sale.
1. Preliminary, subject to change
2. As of November 9, 2015. Ratings are subject to change or withdrawal by the ratings agencies at any time.
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.


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


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



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