SAN FRANCISCO – California Wednesday morning closed the private placement of $1 billion of revenue anticipation notes to Barclays Capital and JPMorgan.
The state sold $500 million of the “supplemental” notes to each bank at a yield of 0.20% with a maturity of June 28.
“We believe we obtained a good deal for taxpayers,” Tom Dresslar, a spokesman for state Treasurer Bill Lockyer, said in a statement.
California sold $5.4 billion of Rans in September, a sale it conducts in most years to help balance the state’s cash flow because the majority of tax revenues come in the second half of the fiscal year, which ends June 30.
But the state needed another boost to its cash on hand. Controller John Chiang warned lawmakers in January that California would run out of cash by late February unless it adopted short-term cash management measures.
The supplemental note placement is among $3.3 billion of such measures, which also include payment deferrals and internal borrowing.
