Transaction Details

Stanislaus Union School District

---

California K-12 Public Finance Group Underwrites First Negotiated Issue at Baird

Baird’s California K-12 Public Finance group served as sole managing underwriter on the $12,150,000 General Obligation Bonds, 2020 Election, 2024 Series B (the “Series B Bonds”) transaction for Stanislaus Union School District. Stanislaus School District was established in 1875 and has since merged with Stoddard and Prescott District to become the Stanislaus Union School District (the “District”). Located in Modesto, California, the school consists of over 3,000 students in five elementary schools (K-6) and one junior high school (7-8). The funds for the project will finance the acquisition, construction, furnishing and equipping of District facilities in accordance with the bond proposition approved at the election, which includes the ballot measure and a project list. The District prepared and submitted to its board for approval a master list of capital improvement projects to be built, acquired, constructed or installed with the proceeds of the Series B Bonds.

Amidst the volatile environment the municipal market faced at the end of May, Baird’s underwriting desk recommended a unique strategy in its pricing approach. Baird assessed the market tone in the morning and waited on the early MMD read to adjust pricing levels as needed. Baird then released a later-than-typical order period and received an impactful order from a bond fund that set the tone for a successful pricing. The transaction was ultimately oversubscribed and all bonds were sold with active participation despite a challenging market environment. Baird was successful in offering the bonds at tighter spreads to MMD than a recent similar A+ insured transaction in years where maturities overlapped.