California State Treasurer Fiona Ma announced the sale of $1.3 billion of revenue bonds for the Trustees of the California State University (CSU) to provide funding for various capital improvements and refund certain of CSU’s outstanding Systemwide Revenue Bonds.
“Funds from this bond sale will soon be put into action to help our students, staff, and faculty in the CSU system,” said Treasurer Ma. “They will finance vital projects such as the expansion of student housing, the construction of new parking structures, sports and recreational facilities, and additional office space for research and teaching.”
The bond sale consisted of three series: $314 million Series 2020C tax-exempt bonds, the $528.6 million Series 2020D taxable bonds and the $466 million Series 2020E taxable bonds. Proceeds of the bonds will provide financing for the acquisition, construction and renovation of a variety of projects and the refunding of prior bond series. The refunding bonds are expected to save $71.2 million in debt service costs over the next 22 years, or $64.1 million on a present value basis.
The CSU system consists of 23 campuses and eight off-campus centers. The campuses are geographically dispersed throughout the State and provide a wide spectrum of higher education services, with more than 4,100 degrees offered. During the 2019-20 fall term, the CSU system provided instruction to approximately 430,000 undergraduate students and approximately 40,000 graduate students.
The joint senior managers for the sale were Goldman Sachs & Co. LLC and RBC Capital Markets, LLC. The co-senior managers were Ramirez & Co., Inc. and UBS Financial Services Inc. Additionally, there were 16 firms participating as co-managers.
The all-in true interest cost was 2.58 percent. The Series 2020C bonds range from a yield of 0.14 percent in 2023 to 2.30 percent, with a 3.0 percent coupon, in 2051. The Series 2020D bonds range from a yield of 0.349 percent in 2022 to 2.817 percent in 2042. The Series 2020E bonds range from a yield of 0.475 percent in 2023 to 3.267 percent in 2060.
The calendar of all upcoming state bond sales is available at BuyCaliforniaBonds.com.
This article was released by the California State Treasurer’s Office.