Shasta College Saves Property Owners Over $2 Million

On August 14, 2014, the Shasta-Tehama-Trinity Joint Community College District (“District”) successfully closed on a financing (“2014 Refunding Bonds”) that refinanced $19,380,000 of the general obligation bonds that voters approved in 2002 to finance the construction and modernization of the District’s facilities. Through this refinancing, property owners in the district will save a total of $2,062,305 over the next 16 years.

In preparing to sell the 2014 Refunding Bonds, the District requested Moody’s Investors Services and Standard & Poor’s evaluate the District’s credit quality. The District maintained its outstanding rating of “Aa2” from Moody’s and was given an upgrade from “A+” to “AA-“ by Standard and Poor’s. Superintendent/President Dr. Joe Wyse said “I am pleased with the work done by college staff to save our local residents over two million dollars in interest over the life of these bonds.  This demonstrates our strong commitment to good stewardship while providing the best educational opportunities possible for the people we serve in our local communities.”

The original bonds were issued in 2006 with an average interest rate of 5% and final maturity in 2030. The 2014 Refunding Bonds were sold at a true interest rate of 3.18% with the same final maturity.