Transaction Details

Hanover Park Park District

Municipal

Lead Bookrunner

Following a competitive RFP process, Baird served as sole manager on the negotiated sale of Hanover Park Park District’s $8,000,000 General Obligation Park Bonds, Series 2025A. Proceeds will be used to replace the roofs of its two community center buildings, which are essential to the operations of the community center for gymnasium activities, recreational programming, tennis, pickleball and community events.

The initial bond timetable had a tentative pricing date the week of February 10th. There was some important economic data releases that week with PPI on Tuesday and CPI on Wednesday. To avoid this, Baird recommended that the transaction price the week before on Thursday, February 6th. Baird implemented two days of premarketing on Tuesday, February 4th and Wednesday, February 5th.

During pre-marketing, Baird was aware that a different underwriter was pricing an Illinois school district transaction on the same day that had the same rating as the District’s transaction. The other underwriter had higher yields (wider spreads to the MMD index) than the District’s transaction. We were concerned that their higher yields could deter investors from the District’s sale or require us to widen our spreads to entice investor interest.

Ultimately, Baird’s final yields for the District were an average of 8 basis points lower than the Illinois school district transaction in 2028-2034 (range of 6 to 11 basis points in each maturity).

As a result of our marketing efforts, Baird received $24,360,000 in orders (3.0x the par amount) with oversubscriptions in 14 of the 15 maturities by as much as 6.2x.

Because of the oversubscriptions, Baird was able to tighten (lower) interest rates by 2 to 6 basis points (0.02%-0.06%) in 12 maturities. From pre-marketing to final pricing, Baird’s price adjustments increased the District’s project fund deposit by $58,000 and lowered the true interest cost by 8 basis points from 4.11% to 4.03%.

Baird received orders from 17 different investors with allotments going to 10 different accounts. Baird brought in 9 new investors on the District’s 2025 Bonds that did not previously hold District debt.