Bloomberg News

California to Finish $5.4 Billion Sale Today, One Day Early

September 14, 2011

(Adds comment from spokesman in third paragraph.)

Sept. 14 (Bloomberg) -- California Treasurer Bill Lockyer said he would complete a sale of $5.4 billion of revenue- anticipation notes today, one day earlier than planned.

California took orders for 57 percent of the notes from individual investors on the sale’s first day, said Tom Dresslar, a spokesman for Lockyer. The state will stop those orders at 10:30 a.m. California time and finish the sale to institutions by day’s end.

“It’s going well,” Dresslar said in an interview. “We expect strong demand from institutional investors.”

The notes, which mature in June, were offered with yields ranging from 0.40 percent to 0.55 percent.

That’s as little as 19 basis points above AAA rated tax- exempt debt maturing in one year, according to data compiled by Bloomberg. That compares with 144 basis points above that benchmark on a $10 billion sale of such notes in November. A basis point is 0.01 percentage point.

In November, Lockyer took orders for 44.3 percent after the first day of the $10 billion note sale and for 60 percent by the time the sale was completed. That was down from 75 percent of the total a year earlier.

High retail demand, Lockyer has said, helps reduce borrowing costs.

--Editors: Stephen Merelman, Mark Schoifet

To contact the reporter on this story: Michael B. Marois in Sacramento at

To contact the editor responsible for this story: Mark Tannenbaum at

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