Proceeds from the sale of the Bonds will be used to refund all or a portion of the City’s Series 2010A and Series 2016A Bonds. The Bonds are general obligations of the City. The Series 2021 Bonds are tax-exempt and structured as fixed-rate serial bonds maturing in years 2022 through 2030 with 5% coupons. The Bonds are not subject to optional redemption prior to maturity.

The Bonds were originally scheduled for sale on February 18, but a severe winter storm struck many parts of the US that week, causing widespread utility outages and business closings. Due to the logistical difficulties presented, the sale date was pushed back, with SWS recommending pricing on Monday, February 22 to best balance transactional readiness, management of investor attention, and a rising interest rate environment.

Despite the challenges, the sale generated over $61 million of institutional orders, resulting in an oversubscription of 3.6x of the par amount being offered, which included 3 new institutional investors that did not participate in the City’s Special Obligation Sales Tax Revenue Bonds, Series 2020 offering that SWS brought to market as Sole Manager on August 20, 2020.

At repricing, SWS’ desk recommended lowering yields by 2 bps from 2022 through 2024, and 1 bps from 2025 through 2027. SWS was able to lower yields despite MMD moving to higher yields, by as much as 10 bps, on the day. The ability to favorably reprice, given the market dynamics on the sale date, reflected well on both the credit and the transactional sales and marketing efforts. The All-In True Interest Cost (TIC) for the City’s bonds was 1.317%.