Transaction Details

City of Rochelle

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Baird served as sole underwriter on the City’s $4,795,000 General Obligation Bonds (Electric System Alternate Revenue Source), Series 2023 which generated $5 million to finance improvements to the City’s electric system.

Baird assisted the City through the rating process, which the City achieved an upgrade to “AA-” from “A+” by S&P.

Baird implemented a 2-day marketing strategy to give investors ample time to review the credit in a fluctuating market environment. The day of pricing, we received $11.7 million in orders (2.4x total par) including orders from two of the City’s local banks. With strong demand in the 2037-2038 maturities with oversubscriptions over 7x, we lowered yields 5 to 7 basis points (0.05% to 0.07%) on those two maturities.

Baird underwrote the unsold balance of one maturity totaling $145,000 and took them into its inventory, demonstrating Baird’s willingness to commit capital and lock in market pricing for the benefit of its clients.