Transaction Details

Calumet City School District No. 155

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Baird served as sole underwriter on the District’s Taxable General Obligation Refunding School Bonds, Series 2021 to refund the District’s outstanding Taxable School Bonds, Series 2012C for debt service savings.

In order to comply with the District’s statutory debt limit, there could be no increase in the District’s total outstanding principal. Baird had to use premium couponing on non-callable maturities to keep the refunding bond par amount equal to the refunded bond par amount. Taxable municipal bonds are typically issued at par. Incorporating premium coupons was a creative and unique approach that allowed the District to still refinance prior bonds for debt service savings.

Because of the rarity of taxable premium bonds, Baird implemented a multi-day marketing strategy that resulted in over $12.1 million in orders and oversubscriptions of 3-4x across the first seven maturities. With strong demand inside eight years on the premium coupons, we lowered yields three basis points (0.03%) in seven maturities. In the end, the refunding generated over $1.51 million in gross debt service savings and $1.33 million in present value savings (16.3% of the refunded par amount).