This transaction represented SWS’s second senior managed engagement with the City of Miami, having recently served as senior manager on the City’s Limited Ad Valorem Tax Bonds (Miami Forever Infrastructure Programs), Tax-Exempt Series 2024A and Taxable Series 2024B.

The Series 2024C Bonds were issued to provide funds to (i) pay or reimburse the City for funds advanced by the City for costs of certain infrastructure capital projects identified in the Bond Resolution and (ii) pay the costs of issuance of the Series 2024C Bonds.

In the days leading up to pricing, the market continued its positive tone from the prior week with low digit bumps across the curve despite stronger than expected economic data. Going into pricing, Thursday, July 18, the market was quiet with yields moving lower by 2 basis points for the 2025 and 2026 part of the curve.

Given the large new issue calendar for the week, coupled with investor feedback with respect to the final spreads for the City’s recently priced Series 2024AB Bonds, SWS recommended entering the order period 2 basis points wider from the pre-marketing levels across the curve in order to generate sufficient investor interest.

Additionally, with the significant offerings earlier in the week, accounts were waiting for allotments and didn’t know how much cash they would have to invest until later in the day; the order flow was very slow, but SWS was able to get at least one-times subscription in every maturity as detailed below.

The transaction received strong interest with over $211 million in priority orders from 24 investors resulting in oversubscription of 2.9x in aggregate.

SWS’s strategy proved to be successful; despite the conservative widenings for release, final spreads were tightened by up to 6 basis points from pre-marketing levels at various points of the curve.