Featured Municipal Bond in the Market, Week of 02/06/2017: Trustees of the California State University Systemwide Revenue Bonds, $1.1 Billion
This week’s featured bond comes from the State of California. The Trustees of the California State University System is issuing revenue bonds in the amount of $1.14 billion the week of February 06, 2017. These California State University revenue bonds are scheduled to be issued in two series: Series 2017A is $821 million in tax-exempt revenue bonds; Series 2017B is $323 million in federally-taxable revenue bonds. The purposes and uses of the bond proceeds are to finance and refinance the acquisition, construction, improvement, and renovation of certain, as well as partial refunding of previously issued revenue bonds: Series 2007A; Series 2007D, and Series 2010A. The Preliminary Official Statement of this bond issue provides a useful map of the campuses and other facilities that are part of the California State University System:
The bonds are secured by a pledge of gross revenues of the University System. Although these revenue bonds are secured on a senior basis to certain other System obligations, no liens on property or taxing power, nor a pledge of full faith and credit exist. Further details on the purposes, redevelopment programs, security, and other matters pertaining to these revenue bonds can the found in the preliminary official statement, provided by MuniOS.
As of December 2016, the State of California has an unemployment rate of 5.2%, which is 0.7% lower than the same time last year, and 0.5% higher than the national rate.
Provided at left is a quick snapshot of financial characteristics of the California State University System, as of 06/30/2016, along with the medians for other public higher education institutions for 2015-2016, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness). In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages, and our employment database. These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.