Transaction Details

Manhattan Park District

Municipal

Lead Bookrunner

On March 20, 2025, Baird was hired via a competitive RFP process and served as sole underwriter on the negotiated sale of Manhattan Park District’s $2,055,000 General Obligation Bonds (Alternate Revenue Source), Series 2025 which carried a “AA-” S&P rating and “AA” rated bond insurance through Assured Guaranty. Baird implemented a 2-day marketing strategy to give investors ample time to review the credit in a fluctuating market environment. As a result of our marketing efforts, Baird received $10,065,000 in orders (4.9x the par amount) with oversubscriptions in the final three term bonds by up to 8x. Because of the oversubscriptions, Baird was able to tighten (lower) interest rates in the final three terms by 6 to 8 basis points (0.06%-0.08%). These price adjustments lowered the District’s borrowing cost by ~$27,000 or 7 basis points (0.07%). Baird stepped up and underwrote the unsold balance of one maturity totaling $100,000 (5% of the par amount) and took them into its inventory, demonstrating Baird’s willingness to commit capital and lock in market pricing for the benefit of its clients. The transaction had a true interest cost of 4.40% over the 20-year term. The Bonds generated $2 million in proceeds to finance various capital improvements throughout the District, with the largest project being the restoration of the District’s Round Barn facility.