Transaction Details

City of Geneva

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Baird served as sole underwriter on the City’s $27,615,000 General Obligation Bonds (Alternate Revenue Source), Series 2024 which financed $30 million in electric system improvements.

We overcame a volatile market the morning of pricing due to Baird’s healthy investor indications received during our two days of premarketing. January CPI came in higher than anticipated, causing Treasuries to trade higher in yield by 0.10% to 0.15% inside 10 years. Despite the weakness in the market post CPI, Baird did not make any interest rate adjustments before running the order period.

In total we received over $125 million in orders or 4.5x the par amount available to sell. We had oversubscriptions in all 17 maturities by as much as 7.7x. Because of these oversubscriptions, Baird was able to lower yields in 16 of 17 maturities by 4 to 5 basis points (0.04%-0.05%). Baird’s price adjustments lowered the City’s overall borrowing cost by nearly $140,000. Baird also added 18 new bondholders to the City’s debt profile. The City achieved a true interest cost of 3.79% on a 20-year term.