This transaction was SWS’ fifth transaction with the District and our third senior managed transaction.

Purpose:

Proceeds from the Bonds will be used for (i) the acquisition, construction and equipment of school buildings and the purchase of school sites and school buses and (ii) refund a portion of the Districts outstanding debt.

Structure:

The Bonds were structured as serial bonds from 2024 to 2044 and a term bond maturing in 2048. SWS utilized 5% coupons from 2024 through 2040 and 4% coupons thereafter. The bonds were optionally callable on 2/15/2033. The 4% coupons were strategically utilized to ensure the Bonds met the District’s minimum savings requirements under policy. The Bonds included an irregular first coupon payment on 8/15/2023 (5 days after delivery) in order to accommodate Texas’ changes tax laws for school districts.

Market Conditions:

The municipal market calendar was heavy with $9.2 billion in par slated for the week, of which over $1.6 billion came in the form of Texas ISDs. In the week prior to pricing, MMD saw volatility with daily bumps, resulting in an overall lowering in yield by as much as 14 bps from Wednesday, July 12thto Wednesday, July 19th, including 3 bps on the day of pricing.

Financing Results:

SWS generated over $622 million orders from 44 institutional investor accounts, resulting in an overall 5.1x oversubscription on the Bonds. As a result of the strong order book, SWS suggested