California will save $19.6 million over the next 10 years (or $16.8 million on a present value basis) by refinancing bonds [on Friday, April 17) while also funding important infrastructure investments, said California Treasurer Fiona Ma.
“This successful sale speaks to the market’s confidence in our State,” Treasurer Ma said of today’s State Public Works Board bond sale. $43.6 million in 2020 Series C bonds were sold to refund previously issued bonds for debt service savings.
Also, the sale of $69.7 million 2020 Series B bonds will provide funding to pay off interim financing that was used to pay for construction costs and related costs of a California Department of Corrections and Rehabilitation (CDCR) juvenile project, a Board of State and Community Corrections (BSCC) jail project, and Hastings College of Law academic building project. A description of each project is as follows:
The CDCR Santa Clara Juvenile project includes the construction of an approximately 49,000 square feet addition to the existing William F. James Boys Ranch facility in the City of Morgan Hill. The project includes a new housing building, admission/treatment/visiting building, new kitchen and dining building, new indoor gymnasium, and security, communications, and infrastructure improvements. The project is expected to be complete and available for occupancy on or before June 1, 2020.
The BSCC Napa County Jail project includes the construction of a new facility in the unincorporated area of Napa County. The project includes five buildings consisting of administration and housing space and will provide a total of approximately 72 beds. Construction has been completed and the project is available for use and occupancy.
The Hastings Academic Building Replacement project includes the design-build phase of a new academic facility of approximately 57,000 square feet. The new academic facility will replace Hastings’ existing primary academic facility and will include classrooms, offices, clinical programs, meeting rooms, conference rooms, and student space. Construction has been completed and the project is available for use and occupancy.
The all-in true interest cost for the bonds was 2.48 percent. The bonds were rated Aa3 (Stable) by Moody’s Investors Service, AA- (Stable) by Fitch Ratings, and A+ (Stable) by Standard & Poor’s.
Wells Fargo Bank, NA and Raymond James & Associates, Inc. served as joint senior managing underwriters, with Stifel, Nicolaus & Company, Incorporated serving as co-senior manager for today’s sale. In addition, there were 16 co-managers to round out the underwriting syndicate.
The calendar of all upcoming state bond sales is available at the Treasurer’s investor relations website at BuyCaliforniaBonds.com.
The article above was released by the Office of the Treasurer of the State of California.