Notes to the Financial Statements
June 30, 2007
Note 24 Subsequent Events
In September 2007, the issuer of a $100 million floating rate note investment held by the Short-Term Investment Fund (Note 4) went into receivership and stopped making payments to investors. The receivers are negotiating the sale of the underlying assets and the market value of the investment will be clearer at the conclusion of those negotiations. In addition, the credit rating of the investment was downgraded from AAA to D by Standard & Poor’s.
In October 2007, $250 million of Special Tax Obligation bonds were issued. The bonds will mature in years 2008 through 2027 and bear interest rates ranging from 3.5% to 5.0%.
In December 2007, $527 million of general obligation bonds were issued that bear interest rates ranging from 3.5% to 5.0%. $300 million were general obligation bonds that mature in years 2008 to 2027, $181 million were general obligation refunding bonds that mature in years 2008 to 2015, and $46 million were taxable obligation bonds that mature in years 2008 through 2012.
In January 2008, the State Bond Commission approved the sale of Pension Obligation Bonds in the amount of $2 billion. Proceeds from the bond sale will be deposited in the Teachers’ Retirement fund to help reduce the unfunded actuarial liability of the fund (RSI).