Transaction Details

City of Aurora

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Baird was selected to serve as senior managing underwriter on the City’s $55,815,000 Taxable General Obligation Bonds, Series 2024A following a competitive RFP process. The Bonds financed the City’s $50 million contribution towards the new Hollywood Casino. It achieved a true interest cost of 5.46% on a 20-year term.

Baird implemented a two-week marketing plan that included: (i) distribution of bond related documents, including a one-page sales memo and investor presentation drafted by Baird; (ii) an internal call with Baird’s fixed income sales team to discuss transaction details surrounding the casino project; (iii) two full days of premarketing to investors; and (iv) a pricing schedule which allowed for two opportunities to tighten spreads after the initial order period.

During the order period, the underwriting team generated $396,285,000 in orders (7.1x the par amount) with over subscriptions in every maturity up to 10.4x. As senior manager, Baird received $376,355,000 in total orders (95%). These oversubscriptions allowed Baird to tighten (lower) interest rates spreads in all 15 maturities by 6 to 15 basis points (0.06%-0.15%). These price adjustments lowered the City’s overall borrowing cost by approximately $800,000.

We received orders from 33 different investors with allotments going to 24 different investors and added 22 new bondholders to the City’s debt profile.