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.