Transaction Details

City of Rochelle

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Baird served as sole underwriter on the City’s issuance of $2,500,000 General Obligation Bonds, Series 2023A which financed improvements in the City’s downtown TIF district.

The two weeks leading up to pricing, there were MMD decreases of 25 to 37 basis points (0.25%-0.37%) in the years the City’s bonds amortize due to renewed optimism that the Fed is done raising interest rates.

The day of pricing, the market tone shifted and many transactions were met with limited success and muted investor interest due to low municipal/treasury ratios. As a result of our marketing efforts, Baird received $3,000,000 in orders (1.2x total par amount) with oversubscriptions in the last three maturities by as much as 3x. Baird underwrote the unsold balances of six maturities in the belly of the curve (2027-2032) totaling $920,000 (37% of the par amount) and took them into its inventory, demonstrating Baird’s willingness to commit capital and lock in market pricing for the benefit of its clients.

The City secured a true interest cost of 3.87% on a 15 year financing.