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Board of Education of the City of Chicago

Municipal

$872,170,000

Unlimited Tax GO & GO Ref Bonds (Dedicated Rev), Series 2022AB

January 13, 2022

JOINT-SENIOR MANAGER

Image by Sam Mgrdichian

Bond proceeds of the Series 2022A bonds will be used to provide funds for the continued implementation of the Board’s Capital Improvement Program and to provide funding for the Fiscal Year 2022 Capital Budget. Bond proceeds of the Series 2022B will be used to current refund the outstanding Series 2011A of the Board.


Select Transaction Highlights

Fitch upgraded the Board’s rating to BB+ from BB; Kroll upgraded the Board’s rating to BBB from BBB-; S&P affirmed their BB rating, all with stable outlooks. CPS staff participated in 7 one-on-one calls with investors. The investor roadshow was viewed by 51 unique investors. The Series 2022A Bonds were structured with principal maturing serially from 2042 (4% coupon) through 2043 (bifurcated 2043 maturities with 4% and 5% coupons) and two term bonds in 2047 (one with 4% coupon one with 5% coupon). The Series 2022B Bonds were structured with principal maturing serially in 2022 and 2035 through 2040, with a term bond in 2041 (all 4% coupons). 


The municipal market was experiencing volatility as it adjusted to sharply higher Treasury yields due to expected Fed rate hikes. This caused investors to reevaluate their strategies based on an expected rising interest rate environment. SWS assisted in generating over $1.3 billion in total orders (1.5x oversubscription). The Series 2022A Bonds achieved an all-in TIC of 3.63%, while the Series 2022B Bonds achieved an all-in TIC of 3.30%; the refunding Series 2022B Bonds achieved approximately $109.05 million in NPV savings, or 27.10% of the refunded bonds.