The Series 2024 refunding would serve as SWS’ first senior managed mandate for the Laredo Independent School District since 2015, and third overall

Purpose:

The purpose was to current refund outstanding Series 2014 Unlimited Tax School Building Bonds and the SWS-led Series 2014 Unlimited Tax Refunding Bonds. The District’s underlying ratings were affirmed AA- from both S&P and Fitch with negative and stable outlooks, respectively.

Upon release of preliminary offering documents, the SWS sales desk would receive reads from nine institutional investors by close of business Monday, May 6th.

Market Conditions:

A robust issuance calendar ($11.6 billion) including several competing PSF transactions in Texas would be offset in part by momentum in U.S. Treasuries and Municipal bond yields leading up to pricing. Early week tailwinds persisted with two Texas PSF transactions accelerated to Monday (day prior) and bumps across the MMD curve (interest rates down) by close of business. Armed with promising investor reads and additional interest from accounts “on the fence”, SWS would recommend maintaining pre-marketing spreads going into the order period .

Financing Results:

The order period opened with a takedown of the first maturity (2025) and would be followed by steady, similar full maturity subscriptions from a diverse book. By the end of the order period, SWS sales desk would garner over $169MM in orders from 16 distinct institutional investors (10 potentially new investors). Each maturity ended 2.1x to 5.8x oversubscribed.

SWS recommended lowering pricing spreads 2bps - 5bps in all but two maturities and coupled with positive net escrow earnings, the District secured $4.77 million in NPV savings or 8.81% of the refunded par.