TITLE

California Ready for Raws

AUTHOR(S)
Finestone, Deborah
PUB. DATE
May 2003
SOURCE
Bond Buyer;5/27/2003, Vol. 344 Issue 31643, p1
SOURCE TYPE
Trade Publication
DOC. TYPE
Article
ABSTRACT
This article reports that California state will receive tier-1 credit ratings on its upcoming $11 billion sale of revenue anticipation warrants (RAW) expected to price on June 11, 2003. The warrants will be sold in two series, each backed by forward purchase agreements with a subset of the seven investment banks that will provide credit enhancement on the deal. The forward purchase agreements obligate the banks toredeem the notes if necessary, a stronger credit arrangement than was provided for the state's Raw sale in 2002. A failure to garner top-tier ratings could complicate the huge sale of short-term debt that is expected to provide the strapped state with badly needed cash.
ACCESSION #
9957310

 

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