California, the most indebted U.S. state, plans to borrow an estimated $10 billion from Wall Street the week of Aug. 13 for cash to pay its bills for the rest of the year, Treasurer Bill Lockyer said.
The state will first offer the revenue-anticipation notes to individual investors during two days of retail sales beginning Aug. 14, said Lockyer’s spokesman, Tom Dresslar. The state will complete the sale Aug. 16 when institutions such as money-market funds can order.
State and local governments typically sell short-term notes to bolster cash flow until tax receipts increase later in the year. A $10 billion sale would be California’s largest since 2010. In September, the biggest state by population borrowed $5.4 billion and had to seek another $1 billion in February this year after tax collections fell short and spending exceeded expectations.
JPMorgan Chase & Co. and Wells Fargo & Co. will be joint senior managers and Los Angeles-based bond firm De La Rosa & Co. will co-manage the sale, Lockyer has said.