Measure C Bond Sale - June 9, 2011

From the Board of Trustees Meeting on June 20, 2011

Measure C bond sale: John Sheldon of Morgan Stanley underwriters presented a summary of the sale of $184 million in district Measure C general obligation bonds. The Series C sale, which closed on June 9, was the third series the district has sold since voters passed Measure C in 2006.
Mr. Sheldon reported a highly successful sale. He said the district's credit ratings were the highest of any community college district in California - Aaa from Moody's Investors Service and AA from Standard & Poor's. Demand for the bonds was strong with $347 million in initial orders for $184 million in bonds. The final interest cost was 4.94%, the lowest of any issues to date, which compared favorably to the expected interest cost of 5.5%. The average tax rate for district property owners will be $18.86 per $100,000 of assessed value. Mr. Sheldon credited the positive outcome in large part to presentations to ratings analysts by Vice Chancellor Kevin McElroy and Budget Director Bernata Slater.

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