SACRAMENTO – California State Treasurer Fiona Ma announced the completion of a $299 million bond sale for the State Public Works Board (PWB), which will refinance outstanding lease revenue bonds of the PWB. The Lease Revenue Refunding Bonds, 2022 Series C were sold on a forward delivery basis and are expected to be issued on September 29, 2022. The bonds, once issued, are expected to save $89.3 million in debt service costs over 15 years, or $74.7 million on a present value basis.
The 2022 Series C bonds will refinance bonds originally issued in 2012, which provided funding for the following projects:
Department of Corrections and Rehabilitation
– DeWitt Nelson Correctional Annex
Judicial Council
– North Butte County Courthouse
– Solano Courthouse
– Woodland Courthouse
Department of Forestry and Fire Protection
– South Operations Headquarters
Department of Toxic Substances Control
– Stringfellow Pre-Treatment Plant
The all-in true interest cost of the bonds is 2.36 percent. The bonds will mature on dates ranging from 2023 to 2037, with bonds initially reoffered to investors at yields ranging from 0.68 percent to 2.25 percent. The bonds are rated Aa3 by Moody’s Investors Service, A+ by S&P Global Ratings, and AA- by Fitch Ratings.
Barclays and Raymond James served as joint senior managers on the offering, with Great Pacific Securities serving as co-senior manager, and 11 firms serving as co-manager.
The calendar of all upcoming state bond sales is available at BuyCaliforniaBonds.com.
