The State of California ("the State') is expected to come to market with $250 million1 in Various Purpose General Obligation Bonds and $2.05 billion1 in Various Purpose General Obligation Refunding Bonds (collectively, the "Bonds").
The proceeds of the $250 million1 of Various Purpose General Obligation Bonds will be used to fund projects under the Water Quality, Supply, and Infrastructure Improvement Act of 2014 and to pay certain costs of issuance. The proceeds of the $2.05 billion1 of Various Purpose General Obligation Refunding Bonds will be to refund a portion of the State's outstanding general obligation bonds issued on April 2, 2009 for debt service savings and to pay certain costs of issuance.
The Bonds are general obligations of the state to which the full faith and credit of the State is pledged. The principal of and interest on all State general obligations bonds, including the Bonds, are payable from any money in the General Fund of the State, subject to State law only to the prior application of such moneys to the support of the public school system and public institutions of higher education.
The bonds are subject to optional and mandatory sinking fund redemption prior to maturity as described in the Preliminary Official Statement. The bonds are rated "Aa3" 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. And, for California residents, federal and state tax-exemption on the bond coupon payments.
How to place an order
The offer is expected to price the week of March 4, 20191, although market conditions and/or the discretion of the issuer may alter the anticipated timeline. Individual investors can place orders online 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 Alerts and see our Municipal Bond New Issue Offerings.