On October 30, 2024, SWS served as book-running senior manager and co-dealer manager on the City of Philadelphia’s (the “City”) $596 million Water and Wastewater Revenue Bonds, Series 2024C (the “Bonds”). This transaction represented the largest water and wastewater transaction for the City in the last 30 years. The Bonds are issued to provide funds to finance capital improvements to the City’s Water and Wastewater System, a deposit to the Debt Reserve Account of the Sinking Fund, the purchase and cancellation of the Purchased Bonds pursuant to the Tender Offer, and the costs of issuance relating to the Bonds.

Given the overall volatility that has been witnessed throughout 2024, the financing team began an aggressive pre-marketing effort the week before pricing. During the week leading up to pricing, there was a sizable correction in the municipal market as municipals played catch-up to the US Treasury market, which experienced significant sell-offs. Based on the feedback from investors, and the move higher in US Treasury yields the morning of pricing, pre-pricing levels were adjusted to build a stronger order book that led to the eventual tightening of spreads during re-pricing. The Bonds saw robust demand, with the order period generating $2.4 billion in orders from 67 investor accounts, resulting in the transaction being 4.0x oversubscribed. The tender refunding resulted in approximately $26.9 million of cashflow savings and $18.6 million of net present value savings (or 5.50% of refunded par) for the City, with an all-in true interest cost of 4.16% in combination with the new money bonds.