By Sheri Kasprzak
New York, March 25 - The state of California increased its general obligation bonds to $6,543,020,000 from the planned $4 billion late Tuesday to accommodate demand, said Tom Dresslar, spokesman for the state treasurer's office.
The bonds (A2/A/A) are due 2013 to 2029 with term bonds due 2031, 2035 and 2038. The serials have coupons from 3.2% to 5.75% with yields from 3.2% to 5.85%. The 2031 bonds have a 5.75% coupon to yield 5.95% and the 2033 bonds have a 6.5% coupon to yield 5.9%. The 2035 bonds have a 6% coupon, priced at par, and the 2038 bonds have a 6% coupon to yield 6.1%.
Merrill Lynch & Co. Inc. and Citigroup Global Markets Inc. were the senior managers. The co-managers included De La Rose & Co. Inc.; Alamo Capital; Backstrom McCarley Berry & Co. LLC; Banc of America Securities LLC; Barclays Capital Corp.; Blaylock Robert Van LLC; City National Securities Inc.; Comerica Securities Inc.; Depfa First Albany Securities LLC; Edward D. Jones & Co. LP; Fidelity Capital Markets Services Inc.; Goldman, Sachs & Co.; Great Pacific Securities; Grigsby & Associates; Jackson Securities Inc.; Jesup & Lamont Securities Corp.; J.P. Morgan Securities Inc.; Loop Capital Markets LLC; M.L. Stern & Co.; Morgan Keegan & Co. Inc.; Morgan Stanley & Co.; Nollenberger Capital Partners Inc.; The Northern Trust Co.; Pershing LLC; Piper Jaffray & Co.; Prager, Sealy & Co.; Ramirez & Co. Inc.; Raymond James & Associates Inc.; RBC Capital Markets Corp.; Rice Financial Products Co.; Siebert Brandford Shank & Co. LLC; SL Hare Capital; Southwest Securities Inc.; Stone & Youngberg; Wachovia Bank; Wedbush Securities; and Wells Fargo Institutional Securities Inc.
Proceeds will be used to restart the state's infrastructure program.
| Issuer: | State of California
|
| Issue: | Series 2009 general obligation bonds
|
| Amount: | $6,543,020,000
|
| Type: | Negotiated
|
| Underwriters: | Merrill Lynch & Co. Inc. and Citigroup Global Markets Inc. (lead); De La Rose & Co. Inc.; Alamo Capital; Backstrom McCarley Berry & Co. LLC; Banc of America Securities LLC; Barclays Capital Corp.; Blaylock Robert Van LLC; City National Securities Inc.; Comerica Securities Inc.; Depfa First Albany Securities LLC; Edward D. Jones & Co. LP; Fidelity Capital Markets Services Inc.; Goldman, Sachs & Co.; Great Pacific Securities; Grigsby & Associates; Jackson Securities Inc.; Jesup & Lamont Securities Corp.; J.P. Morgan Securities Inc.; Loop Capital Markets LLC; M.L. Stern & Co.; Morgan Keegan & Co. Inc.; Morgan Stanley & Co.; Nollenberger Capital Partners Inc.; The Northern Trust Co.; Pershing LLC; Piper Jaffray & Co.; Prager, Sealy & Co.; Ramirez & Co. Inc.; Raymond James & Associates Inc.; RBC Capital Markets Corp.; Rice Financial Products Co.; Siebert Brandford Shank & Co. LLC; SL Hare Capital; Southwest Securities Inc.; Stone & Youngberg; Wachovia Bank; Wedbush Securities; and Wells Fargo Institutional Securities Inc. (co-managers)
|
| Ratings: | Moody's: A2
|
| Standard & Poor's: A
|
| Fitch: A
|
| Pricing date: | March 24
|
| Settlement date: | April 1
|
|
|
| Maturity | Type | Coupon | Yield
|
| 2013 | Serial | 3.2% | 3.20%
|
| 2013 | Serial | 5% | 3.20%
|
| 2014 | Serial | 3.7% | 3.70%
|
| 2014 | Serial | 5% | 3.70%
|
| 2015 | Serial | 4% | 4.05%
|
| 2015 | Serial | 5% | 4.05%
|
| 2016 | Serial | 4.25% | 4.25%
|
| 2016 | Serial | 5% | 4.25%
|
| 2017 | Serial | 4.5% | 4.50%
|
| 2017 | Serial | 5% | 4.50%
|
| 2018 | Serial | 4.75% | 4.75%
|
| 2018 | Serial | 5.5% | 4.75%
|
| 2019 | Serial | 5.5% | 4.90%
|
| 2020 | Serial | 5% | 5.00%
|
| 2021 | Serial | 5.5% | 5.20%
|
| 2022 | Serial | 5.25% | 5.20%
|
| 2023 | Serial | 5.5% | 5.50%
|
| 2024 | Serial | 5.5% | 5.60%
|
| 2025 | Serial | 5.625% | 5.65%
|
| 2026 | Serial | 5.625% | 5.70%
|
| 2027 | Serial | 5.75% | 5.75%
|
| 2028 | Serial | 5.75% | 5.80%
|
| 2029 | Serial | 5.75% | 5.85%
|
| 2031 | Term | 5.75% | 5.95%
|
| 2033 | Term | 6.5% | 5.90%
|
| 2035 | Term | 6% | 6.00%
|
| 2038 | Term | 6% | 6.10%
|
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