Featured Municipal Bond Issue, Week of September 4th, 2018: State of California General Obligation Bonds – $989.3 Million
The State of California is issuing $989,270 million in general obligation bonds for the purposes of refunding certain outstanding bond and commercial paper obligations and to pay the costs of issuance. The bonds are scheduled to be sold by competitive sale on September 6, 2018. The bonds are being issued in three parts: $106.44 million s will be issued as federally taxable various purpose general obligation bonds; $28,.415 million various purpose general obligation refunding bonds and $854.415 million in tax-exempt general obligation refunding bonds.
Principal and interest on all of the state’s general obligation bonds are secured by the full faith and credit of the state, and payable from moneys in the general fund , subject under state law, only to the prior application of moneys in the general fund to the support of the public school system and public institutions of higher education. which will be pledged for the payment of the principal and interest when due. Details on the purposes, tax-status, security, as well as other matters pertaining to these State of California bonds can be found in the preliminary official statement, available on MuniOS.
As of July 2018, the State of California has an unadjusted unemployment rate of 4.4%, which is 0.3% higher than the U.S. rate in July.
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.