Thursday, September 27, 2007

Taxable bonds from CIRM for embryonic stem cell research

On September 7, 2007, the Bond Buyer had written:

Two days later [Sept. 27], the state [California] plans to price $250 million of taxable, variable-rate general obligation bonds for its stem cell medical research program with Morgan Stanley as senior manager.

The californiastemcellreport had a post on Sept. 26:

We asked Tom Dresslar, a spokesman for the state treasurer's office, which handles the bond sales, about the transaction costs of doing such business. He told us that final figures for the stem cell bond sale will not be available until after it takes place. Then we asked him for some benchmark figures for a typical $250 million bond sale.

Here is his breakdown:
"Total -- Approximately $1.6 million

"Bond counsel and co-counsel -- $175,000

"Tax counsel -- $117,000

"Rating agencies -- $142,000

"Underwriting fees -- $818,000

"Various other costs comprise the balance."

The report also noted: Tom Dresslar, spokesman for the state treasurer's office, points out that the minimum buy-in is $5,000.

IPBiz notes that as the bonds go "up for grabs," no scientist has yet accomplished what Hwang Woo Suk claimed in his first or in his second paper in Science, both of which now stand retracted. Human SCNT has not been accomplished.


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