This sole managed transaction is the first time Siebert Williams Shank & Co. LLC (“SWS”) has served GVSU in any underwriting capacity.

The Bonds were issued to refund certain outstanding General Revenue Refunding Bonds, Series 2014BA and General Revenue Bonds, Series 2017, for debt service savings and to pay costs incidental to the issuance of the Bonds.

SWS successfully priced the University’s Bonds in a highly volatile market environment. SWS’ strong premarketing and execution strategy led to over $174 million in priority orders from 10 different investors (4.6x oversubscription). Bond funds and separately managed accounts represented the largest percentage of investor participation with 6 investors having not previously reported holding GVSU bonds.*

Despite MMD decreasing 28-40 basis points (bps) from 8/1 to 8/5 and then increasing 7-10 bps across the curve on the day of pricing, SWS was able to tightened spreads across most maturities by approximately 1 bps from pre-marketing levels which lowered the All-in TIC to 3.08% and allowed GVSU to capture nearly $2.9 million in cashflows savings through FY 2037 (NPV savings of $2.5 million or 6.11% of refunded par amount).

SWS maintained transparent communications with the University and its Municipal Advisor (“MA”) to not only ensure an efficient and smooth execution of the transaction but to also help navigate through substantial market fluctuations and $16 billion of new issue supply.

SWS structured the tax-exempt fixed-rate Bonds with serial maturities from December 1, 2025 through 2034 and 2036. The Bonds were structured with an approximately 10-year optional redemption on June 1, 2034 at 100. To take advantage of the current yield curve inversion and further bolster savings for the University, SWS recommended structuring the transaction to include an 89-day refunding escrow.

SWS also recommended GVSU consider pursuing bond insurance and was tasked to solicit bids from qualified insurers (BAM and AGM). SWS provided the University and its MA with a maturity-by-maturity break-even and savings analysis which resulted in the entire transaction being insured by AGM.

Given the significant market volatility on the day of pricing, bond insurance was a market positive and favorably received by investors which allowed GVSU to even further strengthen the pricing execution of its offering.

* Source: Bloomberg “Holders Report” for GVSU holdings as of August 6, 2024