Mississippi Development Bank
Spec OblI Bonds, Series 2021A & 2021B (Warren County, Mississippi Public Improv GO Bond Project)
September 1, 2021
On Wednesday, September 1, 2021, SWS served as sole manager for the Mississippi Development Bank’s Special Obligation Bonds, Series 2021 issuance on behalf of Warren County , Mississippi. The Series 2021 Bonds were issued to provide funds for the Bank’s purchase of the County’s Public Improvement General Obligation Bonds, Series 2021A&B and to pay costs of issuance of the Series 2021 Bonds and the County Bonds.
The Series 2021A Bond was structured with one bullet maturity on 9/1/2024 and an optional 12-month par call on 9/1/2022. The Series 2021B Bond was structured with serial maturities starting in 9/1/2022 through 9/1/2031 (10 years) and with no optional call provisions. The County will use the proceeds from the sale of the County Bonds for various authorized County infrastructure improvements.
The County Bonds are a general obligation of the County, secured by the full faith, credit and taxing power of the County. However, prior to use of County general funds, the County expects to first apply revenues from the following unpledged sources towards repayment of the County Bonds: Proceeds from federal grants for which grant commitments have previously been received related to portions of the County Project totaling approximately $14.3 million. Semi-annual diversions of State of Mississippi use tax revenues under the Mississippi Infrastructure Modernization Act of 2018.
Pre-marketing took place on Tuesday, August 31st and the Series 2021 Bonds priced on Wednesday, September 1st, 2021. Pre-marketing was done with a 2% coupon for Series 2021A Bond, with the goal to price the Bond as close to par as possible, while the Series 2021B Bond included 5% coupons throughout each maturity. The transaction was 2.1x oversubscribed on aggregate; more than $28.7 million of orders were generated.
Strong interest in the short call and maturity structure of the Series 2021A Bond allowed the SWS desk to tighten the yield by 2bps at repricing. The Series 2021A Bond achieved an all-in TIC of 2.08% while the Series 2021B Bond achieved an all-in TIC of 1.25%.