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Texas Tech University System



Revenue Financing System Refunding and Improvement Bonds, Series 2023A
Revenue Financing System Improvement Bonds, Taxable Series 2023B

July 20, 2023


Image by Sam Mgrdichian


The 2023A&B Bonds were used for the purposes of acquiring, purchasing, constructing, improving, renovating, enlarging or equipping property, buildings, structures, facilities, and roads or related structures.The System received ratings of A1/AA/AA+ by Moody’s, S&P, and Kroll, respectively.


Series 2023A Bonds were structured to have serial bonds from 2025 to 2040 and incorporates a 10-year par call in 2033. The Taxable Series 2023B Bonds were structured with serial bonds from 2024 to 2029.

Market Conditions and Strategy

During the week ending July 14th, over $8.5 billion was issued as most issuers priced ahead of the CPI and PPI releases on Wednesday and Thursday. Both CPI and PPI numbers were benign leading many market participants to believe that the Fed may be finished raising rates after its July 26thmeeting. Treasuries rallied by as much as 30 basis points, but MMD underperformed compared to the UST rally, improving by only 3 to 9 basis points. Given the System’s unique credit profile, a thorough marketing strategy, that included an investor roadshow and 1-on-1 investor calls, was important to educate and attract the optimal amount of investor participation. 

On the Series 2023B bonds, SWS submitted in over $21 million of orders, representing 37% of par, exceeding our liability of 20%. In addition SWS submitted in over $9.5 million of institutional orders, of which SWS was allotted over $6.0 million of bonds, which some were directly allotted to local Texas investment accounts. On the Series 2023A bonds, SWS put in over $41 million of orders, exceeding our firm’s liability. Overall, the System generated 40 of unique institutional investors, of which 29 investors were new (or non-current) to the System’s reported outstanding holders. 17 new non-current investors participated on the System’s Series 2023A issuance and 12 non-current investors participated on the System's Series 2023B Taxable issuance.

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