California officials said the state’s deepening drought means they won’t be able to deliver any of the water sought by contractors that supply two-thirds of the population and a million acres of farmland.
California , whose power bonds received a credit-rating boost, plans to borrow $1.9 billion to refinance debt sold to purchase electricity for cash-strapped utilities during the state’s power crisis a decade ago.
California completed its sale of $1.8 billion in tax-exempt debt, dropping yields from preliminary levels as much as 0.05 percentage point after individual investors placed orders for more than half the offering.
Officials in drought-stricken California said that for the first time in state history, they won’t be able to provide any water to contractors that supply two-thirds of the population and a million acres of farmland.
California took orders yesterday from individual investors for $772 million, or 40 percent, of the $1.9 billion of debt the state is selling this week to refinance bonds issued during its energy crisis almost a decade ago.