The Vault

Calendar of recent and upcoming public finance activities and bond sales

September 5

Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds (Approx. $2.4 billion)

The $2,405,320,000 sale included $1.741 billion of refunding bonds to refinance previously issued bonds under 24 different bond acts for debt service savings, and converts $250 million of variable rate bonds to a fixed rate. The refunding is expected to save taxpayers $690 million over the next 20 years (or $588 million on a present value basis). Final yields to investors ranged from a low of 1.07% for a 2020 maturity with a 3% coupon to a high of 2.72% and 2.07% for 2049 maturities with 3% and 5% coupons, respectively. The all-in true interest cost was 2.54%.

September 17

State Public Works Board Lease Revenue Refunding Bonds, 2019 Series B ($60.9 million)

There were 11 bids from broker-dealers, with UBS Financial Services Inc. submitting the winning bid at an all-in true interest cost of 1.837%. The refinancing of bonds issued in 2006-2007 will result in a savings of $15.7 million to taxpayers over the next 14 years (or $14.4 million on present value basis.)

October 16

Federally Taxable Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds (Approx. $1.13 billion)

The bonds were sold via two separate competitive bids, the first was for $680.13 million of bonds to provide funds for voter-approved projects and programs. The bonds attracted 11 bids from broker-dealers, with BofA Securities submitting the winning bid at an all-in true interest cost of 2.359%. The second was for $457.4 million of refunding bonds to refinance previously issued GO bonds. The refunding bonds attracted 10 bids from broker-dealers, with Morgan Stanley & Co. submitting the winning bid at an all-in true interest cost of 2.39%. The refinancing will result in a savings of $37.8 million to taxpayers over the next 20 years (or $31.6 million on present value basis).

October 29

State Public Works Board Lease Revenue Bonds, 2019 Series C ($313.3 million)

Proceeds will provide funding for two (2) departments: Department of Forestry and Fire (CalFire) to fund the Ione Academy Dormitory project; and Department of Corrections and Rehabilitation (CDCR) to fund: (1) the Riverside County Jail project; (2) the Santa Barbara County Jail project; (3) the Tulare County Jail project; (4) the Sutter County Jail project; and (5) various CDCR Health Care Facility Improvement Program projects. Loop Capital Markets LLC and Siebert Cisneros Shank & Co., LLC served as joint senior managing underwriters, with Alamo Capital serving as co-senior manager. In addition, there were also 11 co-managers to round out the syndicate. The all-in true interest cost was 2.599% and final yields to investors ranged from 1.08% in 2020 to 2.29% in 2044.

November 19

California Health Facilities Financing Authority: No Place Like Home Program Senior Revenue Bonds (Social Bonds - Federally Taxable) (Approx. $500 million)

Proceeds will provide funding to the Department of Housing and Community Development’s No Place Like Home Program, which aids in the acquisition, design, construction, rehabilitation, preservation and operation of permanent supportive housing for persons who are experiencing homelessness, chronic homelessness or who are at risk of chronic homelessness, and who are in need of mental health services.

Week of November 11

Various Purpose General Obligation Bonds and Various Purpose General Obligation Refunding Bonds (Approx. $800 million

Proceeds will provide permanent financing for projects funded with commercial paper notes and refinance previously issued bonds at lower interest cost.

December 5

IBank, California State Teachers’ Retirement System (CalSTRS) Headquarters Expansion Lease Revenue Bonds, Series 2019 (Green Bonds) (Approx. $300 million)

Proceeds will fund the acquisition, design, construction and equipping of an expansion to the CalSTRS headquarters facility in West Sacramento.

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More information about the upcoming fall bond sales can be found at: https://www.buycaliforniabonds.com The bond issuances described above (including the amounts and timing thereof) are preliminary and subject to change or cancellation based on market conditions or other factors as determined by the State Treasurer.