(Los Angeles-AP) -- State officials are authorizing the sale of 12.3 billion dollars in deficit bonds.
The bonds sale was authorized yesterday and is the largest municipal bond offering in US history. The sale will allow California to refinance short-term debt that comes due in mid-June.
An estimated seven billion dollars in bonds will be sold May fourth and an additional 5.3 billion dollars in bonds are scheduled to go on sale between May 24th and June 15th.
Last month voters passed Proposition 57 -- which allows issuance of 15 billion dollars in deficit bonds. The debt is to be repaid over a maximum of 18 years.
The deficit bond sale will eclipse the 11.3 billion dollars in electricity bonds sold to refinance power purchases made during California's energy crisis in 2000 and 2001.
(Copyright 2004 by The Associated Press. All Rights Reserved.)
