The GO 2024 F,G & H Bonds represented SWS’ 21st senior managed transaction for the State, with issuances totaling $10.4 billion.

The 2024 Series F and G Bonds were issued to fund various projects and purposes authorized by the bond acts and the 2024 Series H Bonds were issued to currently refund a portion of the outstanding 2014 Series F and G GO Bonds.

The 2024 Series G Bonds were designated by the State as Social Bonds based on the use of proceeds for education-related purposes.

SWS led a comprehensive marketing campaign which included an investor roadshow and extensive outreach to investors. Investor roadshow was viewed by 48 different investors, 61% of which ultimately submitted orders. Received investor reads from 62 different investors, which was commended by the State due to the accuracy and volume of reads.

Given the volatility of the market, SWS recommended not releasing a pre-marketing wire on Monday, instead waited to set levels for the retail order period the following morning. Despite a choppy market, SWS generated $324 million in retail orders, including $123 million of Connecticut resident specific retail during the retail order period that extended a full day to maximize orders.

The negative tone in the market continued the day of the institutional order period and many investors indicated hesitation with current pricing levels in the volatile market. SWS recommended widening spreads by as much as 5 bps going into the institutional order period in order to build a book of orders.

SWS bifurcated the 2043 maturity which had a 4% coupon and offered the balance with 3% coupons in order to capitalize on the significant investor demand received for the 3% coupon offered on the 2042 maturity during investor outreach.

An additional $2.6 billion in institutional orders were generated during pricing, bringing total retail and priority orders to over $2.9 billion (3.1x subscription) but leaving some maturities in 2025, 2026, and 2032 undersubscribed. Orders were received from 77 different institutional and professional retail investors, including orders from three recently opened hedge funds. At re-pricing, SWS tightened spreads by 1 to 10 bps for select maturities given the strong demand for the 2034 to 2044 maturities $600 million of orders dropped following the tightening of spreads at repricing. 

To preserve the integrity of the yield curve as well as the aggressive pricing levels, SWS underwrote the total unsold balances of $66.6 million including the 2025 and 2026 maturities of 2024 Series F and 2025, 2026, and 2032 maturities of 2024 Series H. The refunding generated $13 million of present value savings (8.6% of refunded par).