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California Gets Orders for 25% of $939.8 Million Bonds

California (STOCA1), the most indebted U.S. state, took orders for 25 percent of $939.8 million of bonds it is offering this week to finance prison hospital and court construction, according to the Treasurer’s office.

Individual investors ordered $238.8 million of the lease- revenue bonds issued by the State Public Works Board during the first day of the sale today, according to the statement from Treasurer Bill Lockyer.

Preliminary yields quoted to prospective buyers included 1.11 percent for a two-year maturity; 2.22 percent for a five- year security; 3.83 percent for one coming due in 10 years, and 4.72 percent for a 20-year bond, according to the statement.

Sales to individuals will continue tomorrow, when the offering will conclude after institutions will have a chance to place orders. Final prices will be set after the sale has ended.

To contact the reporters on this story: Michael B. Marois in Sacramento at mmarois@bloomberg.net;

To contact the editor responsible for this story: Mark Tannenbaum at mtannen@bloomberg.net

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