Published on 9/23/2014 in the Prospect News Municipals Daily.
New Issue: California upsizes $2.39 billion offering of general obligation bonds
By Sheri Kasprzak
New York, Sept. 23 – The State of California sold $2,393,600,000 of series 2014 general obligation bonds, according to a pricing sheet. The deal was upsized from $2.29 billion.
The offering included $937 million of various purpose G.O. bonds, $300 million of various purpose G.O. green bonds, $956.6 million of various purpose G.O. refunding bonds and $200 million of various purpose mandatory put G.O. bonds.
The G.O.s are due 2015 and 2017 to 2027 with term bonds due in 2039 and 2044. The serial coupons range from 2% to 5%. The 2039 bonds have a 5% coupon priced at 113.357. The 2044 bonds have a 4% coupon priced at 101.564 and a 5% coupon priced at 112.636.
The green bonds, which were upsized from $200 million to $300 million, are due 2028 and 2037. The 2028 bonds have a 3% coupon priced at 98.313 and a 5% coupon priced at 118.089. The 2037 bonds have a 3.75% coupon priced at 98.633 and a 5% coupon priced at 113.72.
The refunding bonds are due 2015 to 2034 with 2% to 5% coupons.
The mandatory put bonds are due in 2032 and have a 3% coupon priced at 106.572.
The bonds (A3/A/A) were sold through joint senior managers Citigroup Global Markets Inc. and Wells Fargo Securities LLC. BofA Merrill Lynch was a joint senior manager for the green bonds. Jefferies & Co. was also a co-senior manager.
Proceeds will be used to repay commercial paper, finance green capital projects within the state and refund existing debt.
| Issuer: | State of California
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| Issue: | Series 2014 general obligation bonds
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| Amount: | $2,393,600,000
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| Type: | Negotiated
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| Underwriters: | Citigroup Global Markets Inc. and Wells Fargo Securities LLC (joint senior managers), BofA Merrill Lynch (joint senior manager for green bonds), Jefferies & Co. (co-senior manager), Academy Securities, Alamo Securities Inc., Barclays, Blaylock Beal Van LLC, BMO Capital Markets LLC, Cabrera Capital Markets LLC, City National Securities Inc., Drexel Hamilton LLC, Fidelity Capital Markets LLC, Goldman, Sachs & Co., J.P. Morgan Securities LLC, Mischler Financial Group, Morgan Stanley & Co. LLC, O’Connor & Co. Securities, Piper Jaffray & Co., Ramirez & Co. Inc., Raymond James/Morgan Keegan, RBC Capital Markets LLC, RH Investment Corp., Siebert Brandford Shank & Co. LLC, Southwest Securities Inc., Stifel, Nicolaus & Co., Wedbush Securities Inc., William Blair & Co. Inc. and Williams Capital Group LP (co-managers)
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| Ratings: | Moody’s: A3
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| Standard & Poor’s: A
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| Fitch: A
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| Pricing date: | Sept. 23
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| Settlement date: | Oct. 7
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| $937 million series 2014 various purpose G.O. bonds
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| Amount | Maturity | Type | Coupon | Price
|
| $15 million | 2015 | Serial | 2% | 101.856
|
| $50 million | 2017 | Serial | 5% | 112.831
|
| $50 million | 2018 | Serial | 5% | 115.666
|
| $50 million | 2019 | Serial | 5% | 117.903
|
| $75 million | 2020 | Serial | 5% | 119.2
|
| $50 million | 2021 | Serial | 5% | 120.183
|
| $65 million | 2022 | Serial | 5% | 120.559
|
| $60 million | 2023 | Serial | 5% | 121.077
|
| $55 million | 2024 | Serial | 5% | 122.164
|
| $60 million | 2025 | Serial | 5% | 120.983
|
| $29 million | 2026 | Serial | 5% | 119.815
|
| $14 million | 2027 | Serial | 5% | 118.757
|
| $164 million | 2039 | Term | 5% | 113.357
|
| $30,295,000 | 2044 | Term | 4% | 101.564
|
| $169,705,000 | 2044 | Term | 5% | 112.636
|
|
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| $300 million series 2014 various purpose G.O. green bonds
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| Amount | Maturity | Type | Coupon | Price
|
| $35 million | 2028 | Term | 3% | 98.313
|
| $65 million | 2028 | Term | 5% | 118.089
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| $100 million | 2037 | Term | 3.75% | 98.633
|
| $100 million | 2037 | Term | 5% | 113.72
|
|
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| $956.6 million series 2014 various purpose G.O. refunding bonds
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| Amount | Maturity | Type | Coupon | Price
|
| $40 million | 2015 | Serial | 2% | 100.917
|
| $20 million | 2015 | Serial | 2% | 101.856
|
| $1 million | 2016 | Serial | 2% | 103.278
|
| $6,595,000 | 2017 | Serial | 4% | 109.881
|
| $17,005,000 | 2017 | Serial | 5% | 112.831
|
| $9.19 million | 2018 | Serial | 3% | 107.872
|
| $14.01 million | 2018 | Serial | 5% | 115.666
|
| $3,815,000 | 2019 | Serial | 4% | 113.09
|
| $20,785,000 | 2019 | Serial | 5% | 117.903
|
| $5,365,000 | 2020 | Serial | 4% | 113.519
|
| $19,635,000 | 2020 | Serial | 5% | 119.2
|
| $9.46 million | 2021 | Serial | 3% | 107.161
|
| $41.94 million | 2021 | Serial | 5% | 120.183
|
| $8,575,000 | 2022 | Serial | 4% | 113.269
|
| $23,825,000 | 2022 | Serial | 5% | 120.559
|
| $10,165,000 | 2023 | Serial | 3% | 104.987
|
| $27,535,000 | 2023 | Serial | 5% | 121.077
|
| $7,945,000 | 2024 | Serial | 4% | 113.368
|
| $40,155,000 | 2024 | Serial | 5% | 122.164
|
| $4,775,000 | 2025 | Serial | 4% | 112.24
|
| $35,525,000 | 2025 | Serial | 5% | 120.983
|
| $3.09 million | 2026 | Serial | 4% | 110.847
|
| $44.21 million | 2026 | Serial | 5% | 119.815
|
| $13,595,000 | 2027 | Serial | 3% | 100
|
| $35,205,000 | 2027 | Serial | 5% | 118.757
|
| $50.9 million | 2028 | Serial | 5% | 118.089
|
| $71.7 million | 2029 | Serial | 5% | 117.42
|
| $70.1 million | 2030 | Serial | 5% | 116.673
|
| $79.3 million | 2031 | Serial | 5% | 116.02
|
| $83.2 million | 2032 | Serial | 5% | 115.463
|
| $87.3 million | 2033 | Serial | 5% | 115.001
|
| $10.91 million | 2034 | Serial | 3.625% | 99.506
|
| $39.79 million | 2034 | Serial | 5% | 114.542
|
|
|
| $200 million series 2014 various purpose mandatory put G.O. bonds
|
| Maturity | Type | Coupon | Price
|
| 2032 | Term | 3% | 106.572
|
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