Proceeds of the 2021A Bonds will be used to (i) fund $13.3 million in new money projects, (ii) current refund the District’s General Obligation Bonds, Issue of 2013, Series B, (iii) take out certain SRF loans that the District has outstanding with the State of Connecticut, and (iv) pay costs of issuance. Proceeds of the 2021B Bonds will be used to (i) advance refund the District’s Clean Water Project Revenue Bonds, 2014 Series A (Green Bonds) and (ii) pay costs of issuance.

SWS worked with the District and its Co-Municipal Advisors to identify the SRF loans with the State that would make the most economic sense to take out and optimize the structure in its entirety. SWS prepared an investor presentation for the sale that highlighted the District’s credit strengths despite the impact of the COVID-19 pandemic, which was viewed by 34 investors, 50% of which submitted orders; overall, the transaction resulted in the participation of 27* investors that previously did not hold the District’s credit.

The IOI period of the 2021B Bonds took place on October 19th; the transaction received robust investor demand and maturities were oversubscribed by 1.5x to 8.0x. The transaction received nearly $533 million of orders from 36 investors, $513 million of which were submitted by SWS.

Given the strength of the order book, going into Price Guidance on October 20th, SWS was able to tighten spreads by 3 to 8 bps for the 2022 - 2028 and 2033 - 2042 maturities; at Launch, all maturities were able to be tightened by additional 2 to 5 bps.

The 2021A Bonds were pre-marketed on October 19th and priced on October 20th. SWS tailored the couponing structure to target specific investor interest and maximize overall demand by diversifying the investor base; the transaction generated orders from 23 investors. While most of the maturities received at least 1.0x subscription, certain maturities that were not block-sized saw weaker demand

For those maturities that had at least 2.0x subscription, spreads were tightened by 2 bps.

SWS underwrote those maturities that were not fully subscribed, which amounted to $4 million in bonds

The tax-exempt 2021A Bonds achieved an all-in TIC of 1.606%, while the taxable 2021B Bonds achieved an all-in TIC of 2.635%; the refunding component of the 2021 Bonds achieved approximately $19.8 million in NPV savings, or 10.7% of the refunded bonds.