Transaction Details

Palatine Community Consolidated School District No. 15

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Following a competitive RFP process, Baird was selected to serve as senior managing underwriter on the District’s $45,700,000 General Obligation School Bonds, Series 2023. The Bonds were issued as part of a $93 million referendum, which passed on November 8, 2022. Proceeds will be used for projects approved by District voters which include altering, repairing and equipping existing buildings and constructing and equipping building additions, including improving safety and security, replacing roofs, plumbing and HVAC systems; Installing energy-efficiency improvements and certain Americans with Disabilities Act compliance measures; updating classrooms, science labs, libraries and instructional technology; constructing improvements to establish middle schools and provide full-day kindergarten; and improving sites of the District.

Baird competed against national and regional underwriting firms and was awarded the opportunity to serve as senior managing underwriter (with two co-managers) based on our retail marketing experience and the District’s desire for a strong retail marketing plan.

Baird assisted in the development of a robust marketing plan to generate interest from retail investors which included publications in the District’s local newspaper The Daily Herald. To maximize community outreach, Baird also coordinated additional marketing efforts through collaboration with the District’s communications department, which included an investor presentation/recording, information shared across the District’s various social media platforms, and a press release that was posted to the District’s website.

Baird led extensive premarketing efforts which included spending two weeks creating and distributing flyers and e-mail templates to our Private Wealth Management (“PWM”) group for distribution to their clients. Baird’s investment bankers had calls with each of the five local Illinois PWM offices to educate them on the offering and to generate general awareness. We also initiated spread talk with investors two days prior to running a formal order period.

As a result of our efforts, the Bonds were very well received with over $311 million in orders (6.8x the par amount) and oversubscriptions in all maturities by as much as 10x. Baird alone brought in $295 million in orders (95% of orders received). Overall, mom & pop and professional retail investors submitted approximately $11.3 million in orders, which was a top priority of the District. We were able to lower yields by 4 to 9 basis points on all maturities, which resulted in lower debt service by approximately $295,000. The Bonds achieved an all-in true interest cost of 3.67% over 20 years.