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Revenue Anticipation Notes

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BUSINESS
October 21, 2003 | From Bloomberg News
Wall Street brokerages began taking orders from individual investors Monday for California's sale this week of $3 billion in revenue-anticipation notes, a short-term borrowing routinely used by states to boost cash reserves during months when tax receipts are lower. The notes, which will mature in June, bear an annualized yield of 1%. That return is exempt from state and federal income taxes. Brokers will take orders from institutional investors Wednesday.
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BUSINESS
July 21, 2011 | By Tom Petruno, Los Angeles Times
California will seek $5 billion in short-term loans from banks and other financial institutions next week, hoping to avoid the risk of being locked out of the markets if Congress fails to raise the federal debt ceiling by Aug. 2. Treasurer Bill Lockyer had planned to sell at least $5 billion in so-called revenue anticipation notes to investors in August. The state typically sells such notes at this time of year to bridge the gap between its cash needs and the arrival of tax revenue later in the fiscal year.
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BUSINESS
November 12, 2010 | By Tom Petruno, Los Angeles Times
California is counting on investors to buy almost $14 billion in new debt over the next two weeks as the state returns to the bond market after the drawn-out battle to reach a budget agreement. The budget deal of Oct. 8 already looks out of date: The state's chief fiscal analyst on Wednesday estimated that Sacramento would have to plug a total of $25.4 billion in shortfalls by mid-2012. That may make some bond investors nervous, but many have gotten used to scary fiscal headlines about California for the last decade.
BUSINESS
July 8, 2011 | By Tom Petruno, Los Angeles Times
Standard & Poor's has removed the immediate risk of a downgrade of California's debt rating, saying the state's plan to balance its budget was "largely realistic. " S&P on Thursday raised its outlook for California's rating to "stable" from "negative. " The rating, A-minus, still is the lowest of any of the 50 states. "The negative outlook had been linked to the possibility of a recurring cash deficiency that we now believe the enactment of the fiscal 2012 budget is likely to mitigate for the most part," S&P said in a report.
BUSINESS
July 25, 1994 | From Times Staff and Wire Reports
California will wind up its huge short-term borrowing program Wednesday, when it sells $3 billion in 11-month revenue anticipation notes, or RANs. Last Wednesday the state sold $4 billion in 21-month securities. The RANs are expected to yield 4% to 4.2%, free of state and federal income tax. Brokers report strong pre-offering demand from individual investors. The U.S. Treasury will also be a big borrower this week: It will sell $17.
NEWS
August 25, 1988
The Huntington Park City Council has voted to issue as much as $1.6 million in revenue anticipation notes to avoid cash-flow problems that resulted in spending cuts last year. The notes, which in essence allow the city to borrow against future sales tax revenue, should be sold within the next month, Chief Administrative Officer Donald L. Jeffers said.
BUSINESS
July 21, 2011 | By Tom Petruno, Los Angeles Times
California will seek $5 billion in short-term loans from banks and other financial institutions next week, hoping to avoid the risk of being locked out of the markets if Congress fails to raise the federal debt ceiling by Aug. 2. Treasurer Bill Lockyer had planned to sell at least $5 billion in so-called revenue anticipation notes to investors in August. The state typically sells such notes at this time of year to bridge the gap between its cash needs and the arrival of tax revenue later in the fiscal year.
BUSINESS
September 28, 2010 | By Tom Petruno, Los Angeles Times
California said it was talking with Wall Street banks about a short-term loan of about $5 billion to help replenish the state's cash coffers once a budget agreement is reached in Sacramento. The loan, which could be highly profitable for the banks, would be repaid within about four weeks via "revenue anticipation notes" that the state would sell to individual and institutional investors. The bank deal could enable the state to begin making payments to the long list of creditors that have been stiffed since July 1, when the fiscal year began without a budget deal.
BUSINESS
July 8, 2011 | By Tom Petruno, Los Angeles Times
Standard & Poor's has removed the immediate risk of a downgrade of California's debt rating, saying the state's plan to balance its budget was "largely realistic. " S&P on Thursday raised its outlook for California's rating to "stable" from "negative. " The rating, A-minus, still is the lowest of any of the 50 states. "The negative outlook had been linked to the possibility of a recurring cash deficiency that we now believe the enactment of the fiscal 2012 budget is likely to mitigate for the most part," S&P said in a report.
BUSINESS
July 28, 1994 | Times Staff and Wire Services
Strong demand from individual investors helped the cash-short state of California sell $3 billion in 11-month revenue anticipation notes with relative ease Wednesday. The fixed-rate portion of the notes, or RANs, was originally priced to yield 4.2% annualized. But heavy demand allowed the deal manager, Bank of America, to set the final yield at 4.1%. Still, the cost to the state is high, reflecting its ongoing budget problems: Other, fiscally healthier states would pay as little as 3.
BUSINESS
November 18, 2010 | By Tom Petruno, Los Angeles Times
California delayed by one day its sale of $10 billion in short-term notes to update disclosures to buyers of the debt. Treasurer Bill Lockyer said he was forced to amend the offering's disclosure documents because of a lawsuit filed Tuesday challenging the state's plans to sell and lease back 11 office properties. Failure to complete the real estate transaction would widen the state's projected budget gap, a possibility that investors might want to know about. The change in disclosure means that individual investors who placed orders Monday and Tuesday for $5.89 billion of the notes must reconfirm they want them.
BUSINESS
November 12, 2010 | By Tom Petruno, Los Angeles Times
California is counting on investors to buy almost $14 billion in new debt over the next two weeks as the state returns to the bond market after the drawn-out battle to reach a budget agreement. The budget deal of Oct. 8 already looks out of date: The state's chief fiscal analyst on Wednesday estimated that Sacramento would have to plug a total of $25.4 billion in shortfalls by mid-2012. That may make some bond investors nervous, but many have gotten used to scary fiscal headlines about California for the last decade.
BUSINESS
September 28, 2010 | By Tom Petruno, Los Angeles Times
California said it was talking with Wall Street banks about a short-term loan of about $5 billion to help replenish the state's cash coffers once a budget agreement is reached in Sacramento. The loan, which could be highly profitable for the banks, would be repaid within about four weeks via "revenue anticipation notes" that the state would sell to individual and institutional investors. The bank deal could enable the state to begin making payments to the long list of creditors that have been stiffed since July 1, when the fiscal year began without a budget deal.
BUSINESS
September 24, 2009 | Tom Petruno
Investors' desperation for decent income played into California's hands this week as the state wrapped up its mammoth sale of $8.8 billion in short-term debt. The offering drew bids totaling $9.23 billion as institutional investors fought Wednesday to get the relatively little that was left over after individual investors snapped up most of the securities. Institutions such as mutual funds bid for $2.59 billion of the notes but will get only $2.16 billion because the state is filling all the $6.64 billion in prior orders from individuals.
BUSINESS
September 2, 2009 | Tom Petruno
California's planned sale of as much as $10.5 billion in short-term notes is scheduled for the week of Sept. 21, Treasurer Bill Lockyer's office said Tuesday. The debt, known as revenue anticipation notes, or RANs, would bridge the gap in timing between near-term state spending and tax revenue expected later in the fiscal year. The money raised also would repay a $1.5-billion loan that JPMorgan Chase & Co. made to the state last week. That loan will allow Lockyer to begin redeeming IOUs issued by Controller John Chiang since early July, when the state first began to run short of cash.
CALIFORNIA | LOCAL
October 16, 2008 | GEORGE SKELTON
There they go again -- the governor and Legislature, standing by gawking as the state begins to roll off a cliff. No sign of the governor calling the Legislature into a special session to halt another runaway deficit, the latest projected initially at $3 billion for the current fiscal year. The excuse this time was that the Legislature could not be trusted to behave itself while Treasurer Bill Lockyer was trying to lure investors into a bridge loan -- $4 billion in revenue anticipation notes needed to help tide over the state until the April income tax season.
BUSINESS
November 18, 2010 | By Tom Petruno, Los Angeles Times
California delayed by one day its sale of $10 billion in short-term notes to update disclosures to buyers of the debt. Treasurer Bill Lockyer said he was forced to amend the offering's disclosure documents because of a lawsuit filed Tuesday challenging the state's plans to sell and lease back 11 office properties. Failure to complete the real estate transaction would widen the state's projected budget gap, a possibility that investors might want to know about. The change in disclosure means that individual investors who placed orders Monday and Tuesday for $5.89 billion of the notes must reconfirm they want them.
BUSINESS
September 24, 2009 | Tom Petruno
Investors' desperation for decent income played into California's hands this week as the state wrapped up its mammoth sale of $8.8 billion in short-term debt. The offering drew bids totaling $9.23 billion as institutional investors fought Wednesday to get the relatively little that was left over after individual investors snapped up most of the securities. Institutions such as mutual funds bid for $2.59 billion of the notes but will get only $2.16 billion because the state is filling all the $6.64 billion in prior orders from individuals.
BUSINESS
October 21, 2003 | From Bloomberg News
Wall Street brokerages began taking orders from individual investors Monday for California's sale this week of $3 billion in revenue-anticipation notes, a short-term borrowing routinely used by states to boost cash reserves during months when tax receipts are lower. The notes, which will mature in June, bear an annualized yield of 1%. That return is exempt from state and federal income taxes. Brokers will take orders from institutional investors Wednesday.
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