County of Ashtabula
Public safety center financing achieves pricing improvements in a weaker market
Background & Opportunity
The County of Ashtabula sought to finance the construction, improvement, expansion, furnishing and equipping of new public safety center facilities. The project was part of an approximately $63.98 million capital initiative supported by bond proceeds, state grant funding and County resources. On September 29, 2026, Baird served as sole underwriter on the County’s $25.43 million County Facilities Bonds, Series 2026 (AA insured / AA- underlying).
Implementation
Baird structured the financing primarily with 6.25% coupons and a December 1, 2031 optional call feature. Despite a weaker market backdrop during pricing, the transaction attracted significant interest across the maturity schedule. Orders ranged from approximately 3x to nearly 6x subscribed through the serial maturities, with demand increasing in the longer maturities. The 2056 maturity was approximately 10x subscribed, while the 2051 and 2063 maturities received approximately 6x and 5.6x investor interest, respectively.
Based on the order book, yields were lowered three to four basis points across most serial maturities. Term bond yields were reduced three to five basis points from 2037 through 2051, ten basis points in 2056 and five basis points in 2063.
Results & Impact
The financing generated broad investor participation and achieved pricing improvements during the order period. Investor demand enabled the County to secure long-term financing for its public safety center project on favorable terms despite the weaker market backdrop at the time of pricing. Final yields ranged from 3.93% in 2027 to 5.95% in 2063.
