California Institute for Regenerative Medicine plans two $200 million private placements

By Jennifer Chiou

New York, Feb. 18 - The California Institute for Regenerative Medicine said it is working with the state treasurer's office on a private placement of $200 million of general obligation bonds this year and $200 million again next year.

The institute is planning the deals as a supplement to the public bond market, adding that they will maintain the pace of funding under its proposed grant schedule, according to a news release

The institute said it has significant cash reserves of $160 million, which can fund all existing commitments through at least September 2009, adding that the agency's plans have always called for raising new capital on a cash-flow, as-needed basis.

"We expect the traditional bond market will open soon with resolution of California's budget situation," the instituted commented.

California voters approved the sale of $3 billion of bonds to fund the work of the California Institute for Regenerative Medicine, the instituted said.

The institute release added that the state finance committee created to oversee those bonds has authorized the issue of the full amount, noting that a total of $2.5 billion in authority remains in funding availability.

Proceeds from sale of the bonds are constitutionally protected and can only be used to fund institute programs and operations.

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