Hamilton County

Background

Hamilton County brought a $23.13 million AAA-rated financing to market through its County Bridge Improvement Bonds, Series 2026. Proceeds financed the construction of a new bridge carrying 146th Street over Hazel Dell Parkway, a project designed to accommodate four lanes of traffic and support the County's long-term transportation infrastructure needs. The financing also provided funds to cover costs associated with issuing the bonds.

Opportunity & Implementation

As a key member of Hamilton County's financing team, Baird worked with the County and its municipal advisor to evaluate market conditions following a recent Federal Reserve rate increase. Rather than wait until the following week, the financing team made a quick decision to accelerate the bond sale and capitalize on favorable market conditions during lower interest rate conditions. The transaction generated strong investor interest, particularly in the longer maturities, where subscription levels reached 3.0x to 3.2x and supported improved pricing in key maturities. While demand across the front and intermediate portions of the structure was more varied, the overall order book supported preliminary pricing levels across most maturities.

Results & Impact

The bonds were successfully priced with yields ranging from 2.95% in 2027 to 4.95% in 2045. Market conditions shifted following the County's order period, reinforcing the financing team's decision to enter the market early. The transaction secured long-term funding for an important bridge improvement while demonstrating the value of flexibility and timely market execution.  Baird’s recommendation secured a fixed rate for the County ahead of more than 0.50% of unfavorable market movement in the weeks to come.