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City of San Antonio, Texas



Electric & Gas Systems (CPS ENERGY) Revenue Refunding Bonds, New Series 2023C

October 17, 2023


Image by Sam Mgrdichian

With over $9 Billion in new issue supply, the Bonds would face significant competition the week of pricing- notably the first of many absent of a holiday, FOMC announcement, nor major economic releases (CPI, PPI, jobs)- including a $482MM North Texas Tollway Authority financing and $1.2Bn in State of Connecticut bonds set to price the same day. Hindered in part by the large supply, MMD yields increased 3 to 8 bps across the curve on Monday, October 16th.

Despite the weakened tone, SWS was able to gather numerous pre-marketing reads and net positive feedback from interested institutional investors.

SWS recommended opening the order period at pre-marketing spreads despite the 6 - 9 bp increase in Treasury yields. At the end of the order period, the SWS- led syndicate garnered $873.8 MM in priority orders from 30 institutional investors (5.9x oversubscribed), with 9 potentially new investors in CPSE debt

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