Liberty Hill Independent School District

Background

On February 10, 2026, Baird served as Sole Managing Underwriter for Liberty Hill Independent School District’s (the District) $19,635,000 Unlimited Tax School Building Bonds, Series 2026. The bonds carried ratings of A1 from Moody’s and were enhanced to Aaa through the Texas Permanent School Fund (PSF) guarantee. Proceeds were used to design, construct, renovate, and equip school facilities and related infrastructure, as well as to pay costs associated with issuance.

Opportunity

The bonds were brought to market during a period of strong demand for Texas PSF-guaranteed credits and limited supply. The financing featured a long maturity structure extending to 2050, creating larger blocks in the later maturities and positioning the transaction to benefit from investor demand for long-dated securities.

Implementation

Baird brought the bonds to market and actively managed the order book throughout the pricing process to support distribution of the bonds and reflect investor demand across the maturity schedule. Investor interest developed across maturities, with smaller front-end blocks and larger long-dated maturities attracting varying levels of demand.

During the order period, Baird monitored subscription levels and adjusted pricing where appropriate in response to the order book. For the 2050 maturity, the bonds were structured with a discount coupon to support marketability.

Results & Impact

The transaction generated strong investor engagement across the maturity schedule. Front-end maturities with smaller block sizes saw subscription levels of approximately 1.5x to 3x, while longer maturities in the 2045–2048 range reached roughly 3.5x to 4.5x subscription.

Based on the strength of the order book, pricing across the scale was improved by approximately 2 to 4 basis points. The 2050 maturity experienced exceptionally strong demand of more than 14x subscription. To balance the order book, pricing on the 2050 maturity was adjusted to a 4.375% coupon yielding 4.50%, clearing just 4 basis points wider than the premium 2048 maturity.

All bonds were successfully placed, demonstrating strong investor demand for Liberty Hill ISD’s credit and for PSF-enhanced Texas school district bonds. The financing supports the District’s continued investment in educational facilities.