Crestview Local School District
Strong Investor Demand Supports Improved Pricing Across Dual-Series Financing
On January 28, Baird served as sole managing underwriter for Crestview Local School District’s (the District) dual-series financing, consisting of $2,615,000 School Improvement Refunding Bonds, Series 2026 (General Obligation - Unlimited Taxes) (the GO Bonds) and $11,500,000 Certificates of Participation, Series 2026 (the COPs). The transaction allowed the District to refund outstanding general obligation debt while also funding a comprehensive set of school facility improvements.
The bonds were priced during a constructive municipal market environment, with investors positioning ahead of a Federal Reserve announcement amid a notably light calendar of tax-exempt issuance. These conditions supported strong investor interest across both series and provided an opportunity to improve pricing as the transaction progressed.
The GO Bonds carried underlying ratings of Aa3 from Moody’s, with Aa1 enhancement. Investor demand was strongest in the intermediate and longer maturities, while early maturities were also well received. As a result, select maturities priced 3-4 basis points better than initial indications, with the 2035 maturity achieving the strongest interest and pricing at a 3.00% yield. The series was structured primarily with 5% coupons, with a lower 3.50% coupon in the 2031 maturity to balance investor preferences with the District’s refunding objectives.
The COPs, rated A1 by Moody’s, generated broad and deep investor participation despite their appropriation-backed structure. Demand was particularly strong from 2028 through the long end of the maturity schedule, allowing pricing improvements of 3-4 basis points across much of the curve. The longest maturities in 2046 and 2050 attracted especially strong investor interest, allowing pricing to improve by approximately 10 basis points from initial expectations.
Through disciplined execution and active investor engagement, Baird helped the District capitalize on favorable market conditions, achieving efficient refunding results on the GO Bonds and strong execution on the COPs.