California State Treasurer Fiona Ma announced the successful sale of $829.4 million of taxable revenue bonds to benefit a number of projects overseen by the Trustees of the California State University System.
The Series 2020B bond sale February 5 also included $207.7 million of refunding bonds to refinance previously issued bonds and the better terms will yield a savings of $54.3 million over the next 23 years (or $40.0 million on a present value basis).
“We are continuing to take advantage of historically low interest rates to finance assets that benefit Californians,” Treasurer Ma said. “These bonds will create a better learning and teaching environment for students, faculty, and staff throughout the California State University system.”
Proceeds for the bond sale will be used to finance and refinance the acquisition, construction, renovation, and improvement of certain academic facilities of the California State University and to refund the 2011A Systemwide Revenue Bonds for debt service savings.
The final yields to investors ranged from a low of 1.473 percent for the 2020 maturity to a high of 3.065 percent for the 2042 maturity. The bonds maturing in 2051 have a final yield of 2.975 percent. The all-in true interest cost was 2.947 percent.
The joint senior managers were BofA Securities, Inc. (bookrunner) and Citigroup Global Markets Inc. The co-senior managers were Piper Sandler & Co. and Siebert Williams Shank & Co. Additionally, there were 16 firms participating as co-managers.
The calendar of all upcoming state bond sales is available at BuyCaliforniaBonds.com.
This article was released by the California State Treasurer’s Office.