– by Robert Crump

The Regents of The University of California (the Regents) are scheduled to issue $1.5 billion in Medical Center Pooled Revenue Bonds this week. The negotiated sale is planned for February 26th with Barclays and J.P. Morgan as joint senior managers. Proceeds from the sale of the Bonds will be used to finance or refinance improvements to medical centers owned by the University of California.

About the Bonds

Series N 2020 Bonds are limited obligations of the Regents, payable solely from and secured solely by revenues and amounts held on deposit. All Bonds and related obligations are entitled to the equal benefit, protection and security of the pledge and covenants and agreements of the indenture. Some revenue funds are excluded from the repayment fund as defined in the preliminary official statement.

Repayment of the Bonds and related obligations are secured by a pledge of, and lien on, all revenues and any amounts, held on deposit in the funds and accounts established pursuant to the indenture. The Bonds do not constitute a liability of or a lien upon the funds or property of the State of California or of the Regents, except to the extent of the pledge and lien defined in the indenture. It’s also worth noting that the Regents have no taxing power. Pooled revenue bonds are typically issued to reduce costs associated with issuance and lower interest rates. 

Series 2020 N Bonds are subject to option and extraordinary redemption as defined in the preliminary official statement. In the opinion of Bond Counsel, interest on the Bonds is exempt from State of California personal income taxes. However, this large bond issue is not excluded from gross income for federal income tax purposes. Moody’s, S&P, and Fitch have granted ratings of Aa3, AA-, and AA-, respectively.

University Hospital System

The University of California operates five medical centers located in five of the largest population centers in the State including Los Angeles, Orange County, San Diego, Riverside and Imperial counties, the San Francisco Bay Area and the Sacramento region. As of June 30, 2019, the Medical Centers collectively were licensed for 3,911 beds. Each medical center is an operating subdivision of the University that provides educational and clinical opportunities for students in the University’s Schools of Medicine while offering a comprehensive array of medical services. Readers may view the UC Health financial reports on their website.

University Medical Centers Financial Snapshot for FY 2019:


Provided above is a quick snapshot of financial characteristics of the University of California Medical Centers, courtesy of Merritt Research Services, LLC. (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 calendarcity, state, and county pages.

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.

Potential investors should rely only on the official documents and figures provided in the official statement (prospectus). Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies , they are not intended to replace official information presented in connection with the bond sale. Medians may differ from official sales documents due to methodology or survey base variances.