Transaction Details

Village of West Dundee

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Following a competitive RFP process, Baird was selected to serve as sole underwriter on the Village’s $20,360,000 Taxable General Obligation Bonds, Series 2024A and 2024B. The Bonds generated $20 million to finance the acquisition of land for future development in the Village’s Spring Hill Mall TIF District.

The $5.11 million 2024B Bonds funded the land purchase which could be used for future private development. To provide the Village with the flexibility to redeem these bonds upon a land sale, they were structured with a short call at a premium in one year declining to at par in three years.

Baird proposed a February 1 pricing date after the Fed meeting and Chairman Powell’s press conference. We initiated pre-marketing on January 30 and the Fed concluded its meeting on January 31 with no adjustment in rates. The Fed took a more hawkish stance with rates remaining higher for longer. As a result, we priced in a market that had momentum with investor demand across the curve. There was a 20 basis point (0.20%) decrease in US Treasury rates the day of pricing.

During the order period, Baird received $70,790,000 of investor orders. The orders totaled 3.5x the par amount available to sell with oversubscriptions in all 15 maturities by as much as 6x. This allowed Baird the ability to lower yields in 10 of 15 maturities by 2 to 5 basis points (0.02%-0.05%). The market rally the day of sale and Baird’s price adjustments lowered the Village’s overall borrowing cost by approximately $670,000. US Treasury rates reversed direction the day after pricing by 12-19 basis points (0.12%-0.19%).