Sarasota County, Florida, sold $25 million in bonds to fund the construction of a sports complex.
The bonds mature between 2025 and 2044, yielding between 2.32% and 3.38%. They pay interest at 5%. The securities received a rating of AA+ from Fitch Ratings and AA+ from S&P Global Ratings.
The bonds are special obligations of the county, payable by a lien on the county’s half-cent sales tax.
The rating “reflects the sustained strong pledged revenue growth prospects and the structure’s solid resilience in the context of historical revenue declines and Fitch’s moderate economic decline scenario,” Fitch analysts wrote, referring to a scenario in which the United States experiences a moderate economic downturn.
The bond proceeds will fund the construction of a sports stadium that includes four multi-purpose fields, twelve softball fields, and multiple athletic buildings. Construction on the project is expected to begin in May and wrap in fall of next year.
The county plans to issue an additional $25 million in bonds supported by the sales tax next month. Fitch analysts expect the pledged sales tax revenues “to trend in line with national GDP gains over the long term,” they wrote.
RBC Capital Markets, LLC served as lead underwriter on the issuance, purchasing the bonds for $29 million. The price reflected a premium of $4 million. PFM Financial Advisors LLC acted as financial advisor.