|
|
Article: California Switches Up; Backs CP Program With Standby LOC.(The Regions)
- Article from:
- The Bond Buyer
- Article date:
- July 16, 2009
CopyrightCOPYRIGHT 2009 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
|
Byline: Rich Saskal
SAN FRANCISCO - California converted the enhancement for its commercial paper program to a standby letter of credit from a standby note purchase agreement, effective yesterday.
The change was made to address soaring interest rates on the commercial paper program, which provides initial financing for projects funded by general obligation bonds, said Tom Dresslar, spokesman for Treasurer Bill Lockyer.
"Rates were going up pretty substantially for a while," Dresslar said. On July 2, for example, the rate for seven-day paper hit 8.12%, he said, up from 3.37% a month earlier.
"Our folks in public finance said the ...