Siebert Williams Shank Executes Largest Bond Issuance in History of District of Columbia

Washington, D.C. — September 12, 2024 — Siebert Williams Shank & Co. (SWS), one of the fastest-growing investment banks in the country, oversaw the execution of $1.589 billion of tax-exempt bond offerings for the District of Columbia, the largest bond issuance in the District’s history. 

SWS served as bookrunning senior manager on the three-pronged transaction, which financed the District of Columbia’s General Obligation Bonds, Series 2024A, General Obligation Refunding Bonds, Series 2024B, and General Obligation Refunding Bonds, Series 2024C. The Bonds are rated Aaa / AA+ / AA+ by Moody’s Investor Service, Standard & Poor’s, and Fitch Ratings, respectively.

Together with other funds of the District, the proceeds of the transaction will be utilized for the District’s capital improvement projects, to purchase for cancellation certain obligations that were tendered for debt service savings, to refund the District’s outstanding series of Build America Bonds, which were subject to an Extraordinary Redemption Provision, and to pay the costs and expenses of issuing and delivering the bonds.

“We are extremely proud to shepherd a deal that will help Washington, D.C. enhance its infrastructure and boost its economy for years to come,” said Suzanne Shank, CEO of Siebert Williams Shank. “This transaction is the culmination of hard work by the Office of Finance and Treasury as well as a highly experienced team of advisors and attorneys all focused on delivering strong results for the citizens of the District.”

The Series 2024A Bonds will help pay or reimburse the District for capital project expenditures under the District’s capital improvements program. Its FY 2025 – FY 2030 Capital Improvements Plan (CIP) includes 24 new projects along with 259 ongoing projects carried forward from the previous CIP.

The District’s bond issuance saw robust demand with the order period generating nearly $10 billion in orders from 106 different investors. With the exception of the 2025 and 2026 maturities, all maturities of each series were oversubscribed by 1.5x to 9.3x, allowing yields in most maturities to be lowered by up to 11 basis points. For the maturities that were undersubscribed, SWS committed to underwrite over $50 million in bonds without any changes in yields to maintain the pricing integrity of the transaction.

The refunding components of the transaction resulted in approximately $50.7 million of savings for the District and the all-in-true interest cost of the bonds was 3.43%.

“I'm very fortunate to have spent my 25-year career at Siebert in the District of Columbia office,” said Senior Managing Director of Public Finance & Infrastructure Jonathan Kirn, the lead banker on the deal. “I'm proud of the firm’s work with the District bringing to market their largest offering to date.”

The District’s financing team was comprised of a diverse group of firms. In addition to SWS as bookrunning senior manager, Jefferies LLC served as co-senior manager, with Academy Securities, Huntington Securities, Inc., Mesirow Financial, Inc., Morgan Stanley, Ramirez & Co, Inc, and Raymond James acting as co-managers. Acacia Financial Group, Inc. and Public Resources Advisory Group served as the District’s co-financial advisors; Orrick, Herrington & Sutcliffe LLP served as bond counsel; Hawkins Delafield & Wood LLP served as disclosure counsel; and Squire Patton Boggs (US) LLP and Lewis & Munday, P.C. served as co-underwriter’s counsel.

Dually headquartered in New York, NY and Oakland, CA, SWS is an independent non-bank financial services firm that offers investment banking, sales and trading, research, and advisory services. Its mission is to exceed expectations through value-added results and leave a lasting impact on the sectors, corporations, and communities it serves. SWS counts over 80 Fortune 100 companies and thousands of municipalities nationally among its clients.