LOS ANGELES — California reported that it achieved $195 million in net present value savings on $1.5 billion in tax-exempt and taxable general obligation bonds it priced Tuesday in three separate competitive offerings.
State officials said it was the largest competitive sale of long-term municipal bonds issued in the United States in a single day in more than 25 years.
The sale was comprised of $1.23 billion of tax-exempt bonds and $237 million of taxable bonds that were bid out competitively in three separate groups – California officials view it as one sale.
Pennsylvania sold $1 billion in a single-tranche competitive sale in February 2015.
"The market's clamor for California bonds provides solid evidence that the market is eager to invest in our state," Treasurer John Chiang said in a prepared statement. "Our government is on sound footing after weathering the worst recession in more than half a century."
A large portion of the sale, $998.5 million refunded existing, higher-interest debt.
The refunding will save taxpayers approximately $250 million in interest costs over the remaining life of the bonds. The savings, when calculated on a net present value basis, is approximately $195 million.
The new money raised by the bond sale will pay for highway safety projects, safe drinking water supplies and housing and emergency shelter programs.