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Oct. 25 (Bloomberg) -- California moved up the sale and lowered the yield for $439.6 million of tax-exempt debt it had planned for tomorrow to refinance bonds issued under former Governor Arnold Schwarzenegger to cover a 2003 deficit.
Preliminary yields were lowered to 0.93 percent from 1.125 percent for $364.7 million in securities due in July 2016 and to 1.10 percent from 1.25 percent for $74.8 million in bonds maturing in July 2017, according to data compiled by Bloomberg.
The state had planned to offer the bonds to individual investors through a so-called retail order period today and to institutions tomorrow. The state decided to combine both into one day, said Tom Dresslar, a spokesman for California Treasurer Bill Lockyer.
“We just decided that having a separate ROP didn’t make a lot of sense, given the fact these bonds are more of an institutional product,” Dresslar said.
Yields on most tax-exempt bonds maturing from five to 25 years fell today in line with those on U.S. Treasuries, as European debt crisis concerns drove up demand for safer securities. Yields on top-rated five-year bonds were down about one basis point to 1.25 percent at 3:12 p.m. in New York, according to a Bloomberg Valuation index. A basis point is 0.01 percentage point.
--Editors: Pete Young, Mark Schoifet
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