By Sheri Kasprzak
New York, April 20 – The State of California sold $1,480,670,000 of series 2016 various purpose general obligation bonds, according to a pricing sheet. The deal was downsized from $1,488,795,000.
The deal includes $236,795,000 of series 2016 Group A taxable various purpose G.O. bonds, $176.03 million of series 2016 Group B various purpose G.O.s, $56.2 million of series 2016 Group C various purpose bonds, $461,145,000 of series 2016 Group B tax-exempt refunding bonds an $550.5 million of series 2016 Group C tax-exempt refunding bonds.
The Group A taxable bonds are due 2017 to 2018 with a term bond due in 2021. The serial coupons range from 0.9% to 1.5% with yields from 0.6% to 0.8%. The 2021 bonds have a 1.5% coupon priced at par.
The Group B various purpose bonds are due 2021 to 2025 with 4% to 5% coupons and yields from 1.09% to 1.68%.
The Group C various purpose bonds are due 2028 and 2035. The 2028 bonds have a 5% coupon priced at 128.006 to yield 1.99% and the 2035 bonds have a 3% coupon priced at par.
The Group B tax-exempt refunding bonds are due 2017 to 2020 and 2023 to 2026 with 4% to 5% coupons and yields from 0.61% to 1.79%.
The Group C tax-exempt refunding bonds are due 2027 to 2036 with 3% to 5% coupons and yields from 1.91% to 3.05%.
The bonds (Aa3/AA-/A+) were sold competitively. The Group A bonds were won by Wells Fargo Securities LLC at a 1.329999% true interest cost and the Group B bonds were won by J.P. Morgan Securities LLC at a 1.530566% TIC. The Group C bonds were won by BofA Merrill Lynch at a 2.825815% TIC.
Proceeds will be used to finance capital projects, pay outstanding G.O. commercial paper notes and current refund the state’s series 2013A highway safety, traffic reduction, air quality and port security bonds.
| Issuer: | State of California
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| Issue: | Series 2016 various purpose general obligation bonds
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| Amount: | $1,480,670,000
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| Type: | Competitive
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| Underwriters: | Wells Fargo Securities LLC (winner of Group A bonds), J.P. Morgan Securities LLC (winner of Group B bonds), BofA Merrill Lynch (winner of Group C bonds)
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| True interest cost: | 1.329999% (for Group A), 1.530566% (for Group B), 2.825815% (for Group C)
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| Ratings: | Moody’s: Aa3
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| Standard & Poor’s: AA-
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| Fitch: A+
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| Pricing date: | April 19
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| Settlement date: | April 28
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| $236,795,000 series 2016 Group A taxable various purpose bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
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| $51,795,000 | 2017 | Serial | 1.5% | 100.828 | 0.60%
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| $80 million | 2018 | Serial | 0.90% | 100.19 | 0.80%
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| $105 million | 2021 | Term | 1.50% | 100 | 1.50%
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| $176.03 million series 2016 Group B various purpose bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
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| $50.03 million | 2021 | Serial | 5% | 120.234 | 1.09%
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| $50 million | 2022 | Serial | 5% | 122.861 | 1.24%
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| $43 million | 2023 | Serial | 5% | 125.111 | 1.39%
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| $23 million | 2024 | Serial | 5% | 126.985 | 1.54%
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| $10 million | 2025 | Serial | 4% | 119.978 | 1.68%
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|
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| $56.2 million series 2016 Group C various purpose bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
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| $46.2 million | 2028 | Term | 5% | 128.006 | 1.99%
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| $10 million | 2035 | Term | 3% | 100 | 3.00%
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| $461,145,000 series 2016 Group B tax-exempt refunding bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
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| $48.07 million | 2017 | Serial | 5% | 105.856 | 0.61%
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| $50,535,000 | 2018 | Serial | 5% | 110.018 | 0.68%
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| $53.13 million | 2019 | Serial | 5% | 113.785 | 0.81%
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| $55.86 million | 2020 | Serial | 5% | 117.277 | 0.93%
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| $7.31 million | 2023 | Serial | 4% | 118.155 | 1.39%
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| $26.6 million | 2024 | Serial | 5% | 126.985 | 1.54%
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| $42,985,000 | 2025 | Serial | 5% | 128.59 | 1.68%
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| $176,655,000 | 2026 | Serial | 5% | 130.18 | 1.79%
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|
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| $550.5 million series 2016 Group C tax-exempt refunding bonds
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| Amount | Maturity | Type | Coupon | Price | Yield
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| $65.4 million | 2027 | Serial | 5% | 128.87 | 1.91%
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| $2.9 million | 2028 | Serial | 5% | 128.006 | 1.99%
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| $71.4 million | 2029 | Serial | 5% | 127.042 | 2.08%
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| $65.5 million | 2030 | Serial | 5% | 126.51 | 2.13%
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| $80.9 million | 2031 | Serial | 5% | 125.769 | 2.20%
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| $52.1 million | 2032 | Serial | 5% | 125.139 | 2.26%
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| $54.5 million | 2033 | Serial | 4% | 113.397 | 2.52%
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| $56.7 million | 2034 | Serial | 4% | 112.814 | 2.58%
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| $40.2 million | 2035 | Serial | 3% | 100 | 3.00%
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| $60.9 million | 2036 | Serial | 3% | 99.243 | 3.05%
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