On Thursday, August 7, 2024, Siebert Williams Shank served as book-running senior manager for Crowley Independent School District’s $245,280,000 Unlimited Tax School Building Bonds, Series 2024 issuance. This transaction represents SWS’ second consecutive engagement with the District.

Proceeds from the sale of the Bonds will be used (1) for the construction, acquisition, renovation and equipment of school facilities in the District (including, but not limited to, improvements to enhance safety, security and energy efficiency), including the acquisition of land therefor, and the purchase of school buses and vehicles, and (2) to pay the costs associated with the issuance of the Bonds.

New issue supply was heavy with $12.86 billion slated for the week, of which $1.95 billion came from Texas issuers. Texas ISDs accounted for 14 issuances.

On Friday, August 2, the July jobs report came in much weaker than expected. Stocks and Treasuries yields went into free fall as investors digested recession concerns.

Including the recent employment report, the upcoming Federal Open Market Committee meeting and major shifts in the presidential election have also accounted for the recent market volatility in August.

SWS marketed CISD’s credit strengths despite its downgrade to negative watch from both Moody’s and Fitch.

On the day of pricing, SWS waited for the first MMD read to be released before going to market to seize upon relative market stability.

The SWS led syndicate generated approximately $742 million in orders from 44 investors, of which 25 represented potentially new investors.

To ensure the integrity of the order book, SWS underwrote $4.91 million of unsold bonds.

Despite the market volatility, SWS recommended tightening spreads up to four basis across several maturities, securing an All-in-TIC of 4.36% for the District.