LOS ANGELES — California achieved $104 million in present value savings on a $548.2 million State Public Works Board lease revenue bond refunding that priced Tuesday, according to Treasurer John Chiang.
The $431.9 million Series 2015F Department of General Services' various state office buildings bonds were priced to yield from 0.25% with a 3% coupon in 2016 to 3.05% with a 5% coupon in 2030. The $116.3 million of Series 2015G Department of Public Health's Richmond Laboratory bonds were priced to yield from 0.58% with a 2% coupon in 2017 to 3.47% with a 3.375% coupon in 2031.
The bonds are rated A1 by Moody's Investors Service, A-plus by Standard & Poor's and A by Fitch Ratings.
The overall true interest cost on the bond issue was approximately 2.49%.
"This is a great result," Chiang said in a statement, adding that the savings is a reflection of the state's improving fiscal condition.
The 2015 Series F Bonds refund four SPWB Department of General Services lease revenue bond series: 2002 Series A and C, 2003 Series D and 2005 Series A.
The 2015 Series G Bonds refund 2005 Series B and K issued to fund the Richmond Laboratory Project.
RBC Capital was lead underwriter. KNN Public Finance was financial advisor. Stradling Yocca was bond counsel.
The bonds are expected to close on October 13, 2015.