State Public Works Board of the
State of California Lease Revenue
Refunding Bonds 2017 Series F, G & H

State Public Works Board Of The State Of California

Invest in the State Public Works Board of California. The proceeds from this bond sale will be used to support a range of projects, including the California School for the Deaf's Riverside campus. A portion of the proceeds will also be going to refinance outstanding bonds issued in 2007 to reduce its ongoing debt service costs.


Issuance characteristics
  • Contains callable maturities
  • Federally tax exempt
  • Revenue
  • Negotiated sale

About this bond issuance

  • Purpose

    The Bonds of each Series are being sold by the State Treasurer as agent for sale on behalf of the Board and are being issued by the Board pursuant to the Act and the terms of the related Indenture. See APPENDIX C of the POS for a summary of the Indentures.

    2017F Bonds (Los Angeles Regional Crime Laboratory). The 2017F Bonds are being issued (i) to establish an irrevocable escrow to refund and defease all of the Board's outstanding Lease Revenue Bonds (Office of Emergency Services) 2007 Series A (Los Angeles Regional Crime Laboratory), and (ii) to pay the costs of issuance of the 2017F Bonds.

    2017G Bonds (Various Correctional Projects, Fifth Appellate District Courthouse, Truckee Agricultural Inspection Station). The 2017G Bonds are being issued (i) to establish irrevocable escrows to refund and defease all of the Board's outstanding (a) Lease Revenue Bonds (Department of Corrections and Rehabilitation) 2007 Series F (Various Correctional Projects), (b) Lease Revenue Bonds (Judicial Council of California) 2007 Series G (Fifth Appellate District Courthouse), and (c) Lease Revenue Bonds (Department of Food and Agriculture) 2007 Series H (Truckee Agricultural Inspection Station), and (ii) to pay the costs of issuance of the 2017G Bonds.

    2017H Bonds (Riverside Campus Project). The 2017H Bonds are being issued (i) to establish an irrevocable escrow to refund and defease all of the Board's outstanding Lease Revenue Bonds (Department of Education) 2009 Series B (Riverside Campus Project), and (ii) to pay the costs of issuance of the 2017H Bonds.

    The 2017H Bonds will be designated as a Related Series of Bonds to the Board's outstanding Lease Revenue Bonds (Department of Education) 2012 Series H (Riverside Campus Projects) pursuant to the 2017H Indenture, and the 2012H Bonds will be secured on parity with the 2017H Bonds, sharing equally and ratably the Base Rental due under the 2017H Facility Lease.

    The 2017F Bonds, 2017G Bonds and 2017H Bonds are separately issued and secured. The 2017F Bonds are secured under the 2017F Indenture which pertains exclusively to the 2017F Bonds. The 2017G Bonds are secured under the 2017G Indenture which pertains exclusively to the 2017G Bonds. The 2017H Bonds are secured under the 2017H Indenture, which pertains exclusively to the 2017H Bonds and the 2012H Bonds. A Holder of the 2017F Bonds will have no claim on the revenues or funds securing the 2017G Bonds, 2017H Bonds or any other series of bonds issued by the Board; a Holder of the 2017G Bonds will have no claim on the revenues or funds securing the 2017F Bonds, 2017H Bonds or any other series of bonds issued by the Board; a Holder of the 2017H Bonds will have no claim on the revenues or funds securing the 2017F Bonds, 2017G Bonds or any other series of bonds issued by the Board (other than the 2012H Bonds), except,  in each case, to the limited extent described under "SECURITY AND SOURCES OF PAYMENT FOR EACH SERIES OF BONDS - Master Indenture Reserve Fund" in the POS.

    Please see POS for further details.

  • Obligor

    State Public Works Board of the State of California

  • Issuer

    State Public Works Board of the State of California

  • Security

    The Bonds of each Series are special obligations of the Board, payable solely from certain revenues and other moneys pledged under the Indenture for such Series. The Holders of a Series of Bonds will have no claim on the revenues or funds securing the other Series of Bonds or any other lease revenue bonds of the Board, except to the extent described in the POS.

    The Bonds of each Series will be secured under the Indenture related to such Series by a first pledge of Revenues, which consist primarily of the Base Rental to be paid under the terms of each Facility Lease related to such Series.

    The Bonds of each Series are also secured by a first pledge of the amounts on deposit in the funds and accounts (except for the Rebate Fund) related to such Series of Bonds that are established by the related Indenture for such Series.

    The Bonds will be secured by the Master Indenture Reserve Fund, which will be drawn upon in the event that the Revenues available under the Indenture for a Series of Bonds are not sufficient to pay the principal of and interest on such Series of Bonds when due.

    Please see the POS for further details.

  • Sale conditions

    PRIORITY OF ORDERS AS FOLLOWS:

    1. Net Designated (Exception: if an investor is affiliated with a syndicate member and that syndicate member may not be compensated for the investor's order, the investor will not be required to designate that syndicate member. Please contact the senior manager.)

    2. Retail

    3. Member The Joint Senior Managers will share revenues equally between the two Joint SeniorManagers for orders submitted by either of the Joint Senior Managers from the following categories: Institutional takedown and takedown from Trust Departments, InvestmentAdvisors and Separately Managed Accounts ("SMAs"), except if the investor is affiliated with one of the Joint Senior Managers. Orders in this case will be solely allocated to the other, nonaffiliated Joint Senior Manager. If an investor is affiliated with a Co-Senior Manager and that Co-Senior Manager may not be compensated for the investor's order, the investor will not be required to designate that Co-Senior Manager. PRIORITY POLICY:At least five (5) firms must be designated.No firm may receive more than 50% of any designation. For the purposes of this designation policy, the two Joint Senior Managers will be treated as one firm and will share such designations equally.Each Co-Senior Manager must receive at least 5% of every designation.Selling Group members may not be designated;

  • Risk factors

    Please see the pages 38-40 in the Preliminary Official Statement for a full list of risk factors associated with this issuance.

  • Extraordinary redemption provisions

    Series F, G, H - The 2017F Bonds are subject to redemption prior to their respective stated maturity dates, at the option of the Board, on any date, in whole or in part, from proceeds of insurance or eminent domain proceedings received in connection with the 2017F Refinanced Facility, 2017G Refinanced Facilities and 2017H Refinanced Facilities at the principal amount thereof, plus accrued interest thereon to the date fixed for redemption, without premium.

    See Appendix C in the Preliminary Official Statement for more details.

About the issuer

Contact information
Website

Ratings

Ratings

A+

S&P

A1

Moody's

A+

Fitch

Financing team

Neighborly Securities
Neighborly is a co-manager on this issuance.
Municipal Advisors
KNN Public Finance, LLC
Bond Counsel
Stradling Yocca Carlson & Rauth