California To Raise $5B Loan

California is seeking to raise a bridge loan worth $5 billion.

California is seeking to raise a bridge loan worth $5 billion, Bloomberg reports. Proceeds from the loan will help pay bills until the state can sell revenue anticipation notes (RANs) in August. The revenues from the issue of RANs will repay the loan.

A similar $6.7 billion bridge loan was secured by the state from JPMorgan Chase and five other banks in October. The loan was then paid back by raising $10 billion from the sale of RANs in November.

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