Transaction Details

Buncombe County

Municipal

Lead Bookrunner

Baird served as sole managing underwriter to Buncombe County, North Carolina (the “County”) on its $53,770,000 Refunding Limited Obligation Bonds, Series 2025 (the “Bonds”). The County is the most populous county in the western part of the State and serves as a regional economic center for western North Carolina.

In the aftermath of Hurricane Helene, the County faced significant environmental and economic challenges. The storm brought heavy rainfall and flooding, causing widespread property damage to homes, commercial buildings, roads, bridges, and public utilities. According to FEMA data from March 2025, more than 11,700 residential properties (approximately 8.55% of all residences in the County) experienced verified losses. Critical infrastructure was disrupted, and the economic toll was amplified by damage to major tourist attractions, with tourism revenue expected to decline for the fiscal year ending June 30, 2025. The full extent of the storm’s impact remains uncertain. Additionally, the County's bonds received an Aa1 rating with a negative outlook and AA+.

Despite these headwinds, Baird successfully led the County’s $53.77 million bond refunding, which refinanced outstanding 2015 Bonds maturing on or after June 1, 2026, and funded issuance costs. The bonds featured maturities through 2035 and were priced during a favorable window in the market. A firm tone in Treasuries and overall stability in the municipal market allowed us to move the deal up and shorten pre-marketing efforts, avoiding potential market volatility tied to newly implemented tariffs.

The order period ran from 10:00 to 11:30 a.m. ET. Although initial interest was muted, demand accelerated with about 30 minutes remaining. We secured participation from 13 unique buyers, and most maturities were oversubscribed by 3–7 times. This allowed us to tighten spreads by 3–7 basis points, achieving final pricing 8–10 basis points better than a comparable AA+ North Carolina credit priced the week prior. This transaction resulted in net present value savings of $4,104,827 or 7.044% of the refunded par amount, a meaningful financial benefit to the County.

Both the County and its Municipal Advisor expressed appreciation for Baird’s strategic approach, flexibility, and strong execution in navigating a challenging credit and market environment.