Trustees of the California State University Systemwide Revenue Bonds, Series 2016

Par Amount $1,383,105,000
Trustees of the California State University
Systemwide Revenue Bonds, Series 2016
Series 2016A: $1,133,105,000
2016B-1: $500,000,000 / 2016B-2 $100,000,000 / 2016B-3 $100,000,000
Role of HSE: Co-Senior Managing Underwriter

In March of 2016, HSE served as Co-Senior Manager for the Trustees of the California State University’s (“CSU”) Systemwide Revenue Bonds, Series 2016 (the “Bonds”). The proceeds of the Bonds were used to refinance the acquisition, construction, renovation and improvement of certain facilities of CSU through the refunding of certain outstanding lease revenue bonds issued by the State Public Works Board (“SPWB”) of California. Effectively, this eliminated the role of the SPWB and allowed CSU to be autonomous with its debt program.

Historically, the State has funded Academic Facilities with proceeds of State Public Works Board lease revenue bonds and State general obligation bonds for which, in each case, the State made all debt service payments. SB 860 provided CSU with the statutory authority to issue bonds to finance Academic Facilities, as well as providing CSU with the ability to pledge additional revenues to support its debt obligations, including but not limited to student tuition. At the same time, SB 860 shifted budgetary responsibility for paying debt service on State Public Works Board lease revenue bonds and State general obligation bonds issued on behalf of CSU from the State to CSU.

As a Co-Manager for the CSU’s $1.063 billion new money and refunding bond issue in August of 2015, HSE provided CSU with a detailed refunding analysis utilizing the firm’s Matrix Based Criterion. HSE’s quantitative group analyzed a wide range of refunding scenarios and the efficiencies associated with those scenarios. As a result of this analysis provided to CSU, coupled with HSE’s notable sales performance on the August 2015 issue, HSE earned the promotion to Co-Senior Manager for the March 2016 sale.

Final Designations % of Total Designations

Rank

Hutchinson, Shockey, Erley & Co.

5.492%

4

 

 

Sum of HSE Order Total ($)

Count by Order Type

 

Series

Non-Retail

Retail

Non-Retail

Retail  Total Sum of Orders

Total Count of Orders

A

$18,650,000

$11,900,000 11 34

$30,550,000

45

B-1

$5,000,000

1

$5,000,000

1

B-2 $5,000,000 1 $5,000,000

1

B-3

$5,000,000 $500,000 1 1 $5,500,000

2

Grand Total $33,650,000 $12,400,000 14 35 $46,050,000

49