The County of Santa Barbara, California, sold $98.1 million in certificates of participation to finance the construction of a new headquarters for the country’s probation department and other capital projects.
The certificates mature between 2024 and 2043, yielding between 2.59% and 3.78%. They received a rating of AA+ from S&P Global Ratings.
“Santa Barbara County has demonstrated strength and resilience across credit fundamentals, as evidenced by a consistent growth trajectory in its tax base, primary revenue sources, and available fund balance,” S&P analyst Krystal Tena said in a press release.
The county will put more than half of the certificate proceeds, some $53 million, toward the construction of a new headquarters for its probation department, which helps newly released inmates transition back into society. The county will spend an additional $20.4 million of the proceeds on renovating its jail, with the remainder spread across several capital improvement projects.
Santa Barbara’s general fund recorded $44 million in operating revenue last fiscal year. About a third of the fund’s operating expenses are from jail operations.
Hilltop Securities Inc served as underwriter on the issuance, purchasing the certificates for $109.5 million. The price reflected a premium of more than $11 million. KNN Public Finance LLC acted as financial advisor.