The State of California is expected to come to market with $650 million1 in General Obligation Various Purpose Bonds and $1.65 billion1 in General Obligation Various Purpose Refunding Bonds (collectively, the "Bonds").
Proceeds of the Various Purpose Bonds will be used to: (i) fund construction projects under the Bond Act ii) pay certain of the State's outstanding general obligation commercial paper notes that were issued to fund projects as they mature iii) pay certain costs of issuance of the Bonds. Proceeds of the Various Purpose Refunding Bonds will be used to: (i) refund certain outstanding general obligation bonds of the State for debt service savings, (ii) refund certain outstanding variable rate general obligation bonds of the state to effect a favorable reorganization of State debt and (iii) pay certain costs of issuance of the Refunding Bonds. See the Preliminary Official Statement for more details.
The Bonds are general obligations of the State to which the full faith and credit of the State is pledged. The principal and interest on all State general obligation bonds are payable from any moneys in the General Fund of the State, subject under State law only to the prior application of such moneys to the support of the public school system and public institutions of higher education. See the Preliminary Official Statement for more details.
The Various Purpose 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 September 2, 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.