About this bond issuance
The 2018 Bonds are being issued for the purpose of financing or refinancing projects at the University, as well as refunding a portion of The Regents' outstanding General Revenue Bonds, 2009 Series R (Taxable-Build America Bonds) in the aggregate principal amount of $112,683,100*.
In addition to the 2018 Bonds, The Regents expects to issue The Regents of the University of California Limited Project Revenue Bonds, 2018 Series O and 2018 Series P (Taxable) (together, the "2018 Limited Project Revenue Bonds") in the aggregate principal amount of $834,060,000* on or about June 5, 2018. The 2018 Limited Project Revenue Bonds will be issued for the purpose of financing and refinancing the acquisition, construction, improvement, and/or renovation of certain facilities of the University, including the refunding of a certain portion of the 2009 Series R Bonds. Issuance of the 2018 Bonds is not contingent on issuance of the 2018 Limited Project Revenue Bonds, and the 2018 Bonds and 2018 Limited Project Bonds may or may not be issued concurrently.
*Preliminary, subject to change
ObligorThe obligor is the organization that holds ultimate responsibility for the bond issuance, and will ensure that investors get repaid.
The Regents of the University of California
IssuerOften the obligor. However, sometimes issuers partner with an authorized conduit financing non-profit within their state or city to issue the bonds.
The Regents of the University of California
AuthorityBefore an issuer can raise money for a project, they must first have the legal authority to do so. This authority is sometimes preceded by a general election, and awarded after the successful passing of a bond measure.
The 2018 Bonds are authorized to be issued pursuant to the powers and authority of The Regents of the University of California ("The Regents") contained in Article IX, Section 9 of the Constitution of the State of California. The 2018 Series AZ Bonds are issued in accordance with the provisions of an indenture dated as of September 1, 2003 (the "General Revenue Bond Indenture") as previously amended and supplemented and as further supplemented by the Fifty-Third Supplemental Indenture, dated as of June 1, 2018; and the 2018 Series BA Bonds are issued in accordance with the provisions of the General Revenue Bond Indenture as previously amended and supplemented and as further supplemented by the Fifty-Fourth Supplemental Indenture, dated as of June 1, 2018 (as so amended and supplemented, the "Indenture"), by and between The Regents and The Bank of New York Mellon Trust Company, N.A. as successor trustee (the "Trustee").
SecurityThe security section is a breakdown of the funds an issuer is planning to use to repay its investors. This repayment can come from a variety of sources, including local taxes.
The 2018 Bonds are limited obligations of The Regents, payable solely from General Revenues, the proceeds of the Bonds and any other amounts held in any fund or account established pursuant to the Indenture (excluding the Rebate Fund). The 2018 Bonds and all other Bonds issued pursuant to the Indenture are entitled to the equal benefit, protection and security of the pledge and covenants and agreements of the Indenture.
TrusteeThe trustee is a third-party, often a large bank or financial institution, responsible for all payment flows between an issuer and an investor. This trustee is in charge of processing coupon payments.
The Bank of New York Mellon Trust Company, N.A.
The 2018 Series AZ Bonds maturing on or before May 15, 20__ are not subject to redemption prior to their respective stated maturities. The 2018 Series AZ Bonds maturing on or after May 15, 20__ are subject to redemption prior to their respective stated maturities at the option of the Regents as a whole or in part on any date on or after May 15, 20__ at a redemption price equal to the principal amount of the 2018 Series AZ Bonds called for redemption, together with interest accrued thereon to the date fixed for redemption without premium.
The 2018 Series BA Bonds maturing on or after May 15, 20__ are subject to redemption prior to their stated maturities at the option of The Regents, in whole or in part and if in part among maturities to be designated by the Regents on any date at a redemption price equal to the greater of (1) 100% of the principal amount of the 2018 Series BA Bonds to be redeemed or (2) the sum of the present value of the remaining scheduled payments of principal and interest to the maturity date of such 2018 Series BA Bonds to be redeemed.
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