Transaction Details

Forest Preserve District of DuPage County

Municipal

Lead Bookrunner

Baird served as sole manager on the negotiated sale of the Forest Preserve District of DuPage County’s $79,905,000 General Obligation Limited Tax Bonds, Series 2025.

Baird coordinated the ratings process and drafted a rating presentation for District staff. The District was successful in maintaining its “AAA” rating from S&P.

Baird proposed a pricing date to follow the release of economic data. CPI came in lower than projections driving municipal interest rates lower by 2 to 3 basis points (0.02% to 0.03%) through the term of the District’s bonds. This market movement alone decreased the District’s borrowing cost by $115,000.

Baird implemented a 2-day marketing strategy and received healthy indications of interest from investors across the interest rate curve.  As a result of our marketing efforts, Baird received $602,525,000 in orders (7.5x the par amount) with oversubscriptions in every maturity by up to 12.6x.

Baird received orders from 34 different investors with allotments going to 28 different accounts. Baird brought in 21 new investors on the District’s 2025 Bonds that did not previously hold District debt.

Because of the oversubscriptions, Baird was able to tighten (lower) interest rates in every maturity by 4 to 12 basis points (0.04%-0.12%).  These price adjustments lowered the District’s borrowing cost by ~$466,000 or 10 basis points (0.10%).   Between the market movement and price adjustments, the District’s overall borrowing cost lowered by ~$581,000 or 0.13% between the start of our pre-marketing efforts and final sale.   The transaction had a true interest cost of 3.36% over the 9-year term.