Transaction Details

Oswego Fire Protection District

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Baird served as sole underwriter on the negotiated sale of the Oswego Fire Protection District’s $11,500,000 General Obligation Bonds, Series 2023 which carried an “A-” underlying rating and qualified for “AA” rated bond insurance through Build America Mutual. Bond proceeds financed referendum-approved capital improvements and equipment in and for the District and refunded certain outstanding indebtedness of the District.

The Bonds priced one day prior to the release of CPI and PPI and two days prior to the June Fed meeting which resulted in very limited investor participation. On the day of pricing, there was a confluence of circumstances that lead to tepid investor interest including (i) the fact that the deal priced on a Monday to accommodate the District’s schedule, (ii) the District’s credit quality which some investors viewed as a BBB credit and (iii) the inverted yield curve which made interest rates unattractive for the 2026 to 2033 maturities. Baird was able to find buyers for all of the bonds with limited increases in interest rates when compared to other transactions in the market that day. The District achieved a true interest cost of 3.95% on a 11-year term.