California to price $2.3 billion of G.O. bonds in four tranches

By Cristal Cody

Eureka Springs, Ark., March 3 – The State of California is set to price a $2.3 billion general obligation bond (Aa3/AA-/A+) offering, according to a market source and a preliminary official statement.

The deal includes $830 million of various purpose G.O. bonds, $65 million of school facilities G.O. bonds, $1,155,000,000 of various purpose G.O. refunding bonds and $250 million of mandatory put G.O. bonds.

The bonds will price through a negotiated offering on March 8.

Citigroup Global Markets Inc. and Goldman Sachs & Co. are the senior managers.

Siebert Brandford Shank & Co., LLC and U.S. Bancorp Investments, Inc. are co-senior managers.

The co-managers are Academy Securities, Inc.; Alamo Capital Inc.; BofA Merrill Lynch; Blaylock Beal Van, LLC; BOSC, Inc.; Drexel Hamilton, LLC; Fidelity Capital Markets LLC; FTN Financial Capital Markets; Hilltop Securities Inc.; Hutchinson, Shockey, Erley & Co.; J.P. Morgan Securities LLC; Jefferies & Co.; KeyBanc Capital Markets LLC; Loop Capital Markets LLC; Mesirow Financial, Inc.; Morgan Stanley & Co. LLC; Ramirez & Co., Inc.; Raymond James/Morgan Keegan; RBC Capital Markets LLC; RH Investment Corp.; Rice Financial Products Co.; Stern Brothers & Co.; Stifel, Nicolaus & Co. Inc.; Wells Fargo Securities LLC; and William Blair & Co.

Proceeds from the sale will be used to fund projects, to pay certain outstanding G.O. commercial paper notes and to advance refund certain outstanding G.O. bonds.

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