PHOENIX — The Santa Clara County Financing Authority, Calif. will sell $160.85 million of highly-rated bonds in a competitive sale next week.
The bonds, rated AA-plus by S&P Global Ratings and AA by Fitch Ratings, will be used to advance refund a portion of some outstanding debt issued in 2007 and 2008. The bonds will be sold in a single series, series Q. KNN Public Finance is financial advisor on the deal, and Orrick, Herrington & Sutcliffe is bond counsel.
The bonds are secured by the revenues of the authority, which primarily stem from lease payments made to it by the Bay Area county of nearly 2 million people, with its seat in San Jose.
The county has sharply reduced its liabilities and placed itself in strong financial position over the past several years,
The authority is a joint powers agency formed to help finance county capital improvements.
The authority's audited financial statements show that it has decreased its liabilities significantly over the past three years, with total liabilities dipping from $842.9 million in 2013 to $763.1 million last year.
S&P noted the county's very strong economy and management.
"We consider the county's economy very strong," the agency said, citing a projected per capita effective buying income of 159% of the national level and per capita market value of $205,498, which grew by 8.7% over the past year to $389.8 billion in 2016. The county unemployment rate was 5.2% in 2014.
"We view the county's management as very strong, with strong financial policies and practices under our FMA methodology, indicating financial practices are strong, well embedded, and likely sustainable," S&P said.
