This is to refinance existing debt and should save the state around $250 million in debt-service payments. There was no problem attracting investor interest during this week's sale - everybody is searching for decent returns (a 10-year bond was yielding 2.69 percent). From Dow Jones:
Earlier this month, Standard & Poor's sweetened its outlook on California to positive from stable. At the time, the ratings firm said it could upgrade the Golden State, depending on its ability to better align its cash performance and budget assumptions. But some market participants said while California's financial picture has generally improved, with smaller budget deficits than a few years ago, the state is by no means a model of fiscal health. Last week, California privately placed $1 billion in notes with Barclays PLC and J.P. Morgan Chase & Co. to help stem a potential cash crunch.