BUSINESS
04/25/2009 05:12 am ET | Updated May 25, 2011

California: $6.5 Billion Bond Sale

March 25 (Bloomberg) -- California sold the biggest U.S. tax-exempt bond issue in almost five years to jump-start capital spending after tight credit and a record budget impasse kept the state out of the municipal market since June.

California boosted its sale 64 percent to $6.54 billion yesterday, following a state advertising push that stretched to New York City for the first time and helped drive about $3.2 billion in purchases by individual investors. The "huge demand" allowed the state to offer bonds to mutual funds and other institutions a day earlier than planned, said Tom Dresslar, spokesman for State Treasurer Bill Lockyer.

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