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City of Lancaster (TX)



General Obligation Refunding Bonds, Series 2020

January 27, 2020


Image by Sam Mgrdichian

SWS’s desk generates over $84 million in institutional orders

Proceeds from the Bonds were used to current refund the City’s outstanding General Obligation Bonds, Taxable Series 2010A (Build America Bonds – Direct Payment) and Tax and Waterworks and Sewer System Surplus Revenue Certificates of Obligation, Taxable Series 2010A (Build America Bonds – Direct), which are callable on February 15, 2020.

Overall, the transaction was 3.4 times oversubscribed with considerable investor interest in years 2031 through 2040 where subscription levels ranged from 4 – 5.4 times. SWS’s desk generated over $84 million in institutional orders from 21 different investors. Notable investors who placed substantial orders included Eaton Vance – TABS, Merrill TOB, Maritime Funds, 16th Amendment Advisors LLC, Build Capital and State Farm Insurance Companies.

SWS’ underwrote approximately $1.6 million in bonds in years 2021 ($680,000) and 2023 ($915,000). The City generated net present value savings of $4.44 million or $5.7 million on a cash flow basis, 16% of the refunded bonds with 2.537% in all-in true interest cost.

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