The tax-exempt bonds were issued to finance a loan to Wesley Hawaii LLC to pay a portion of the cost of acquiring, constructing, equipping and financing a 70-unit mid-rise 4-story multi-family rental housing project.

SWS structured bonds with a final maturity of July 1, 2028 and an initial mandatory tender of July 1, 2027. The “Aaa/VMIG 1” rating by Moody’s is based on the strong legal structure and the high credit quality of the investments securing the bonds. Monies on deposit with the Trustee are invested in eligible investments that will generate revenues to fully cover bond debt service on each interest payment date.

SWS pre-marketed the bonds for a week and strategically decided to price on Thursday, June 20th of the shortened holiday week. This decision was made to avoid the bulk of the week’s new issue supply, which priced on Monday and Tuesday before the Juneteenth holiday in the middle of the week.

SWS was able to capitalize on the stable tone of the municipal market which saw no changes in MMD the week of pricing, following two weeks of positive changes to MMD with bumps across the yield curve. Overall, the transaction received $167 million of priority orders and was 5.6 times oversubscribed, of which $130 million of orders came from nine investors who did not already hold any of DCHFA’s bonds. The strength of the order book allowed SWS to tighten spreads by five basis points from preliminary pricing levels. SWS’ strong marketing and pricing efforts resulted in DCHFA achieving an all-in TIC of 3.65%.