Transaction Details

Fort Bend Independent School District

Municipal

Lead Bookrunner

Fort Bend Independent School District (the “District” or “FBISD”), headquartered in Sugar Land, Texas, is one of the ten largest public school districts in the state, serving over 80,000 students across more than 80 campuses. Established in 1959 through the consolidation of the Sugar Land and Missouri City school districts, FBISD serves a culturally and economically diverse population across Fort Bend County and parts of Harris County. Guided by its mission to inspire and equip all students to pursue futures beyond what they can imagine, the District is known for academic excellence, innovative programs, and strong college and career readiness initiatives. FBISD continues to invest in infrastructure and educational resources to meet the needs of its growing communities.

Baird served as sole managing underwriter for FBISD’s $143,835,000 Variable Rate Unlimited Tax Refunding Bonds, Series 2025B (the “Bonds”). Proceeds from the Bonds will be used to: (1) refund a portion of the District’s outstanding debt to enhance long-term financing efficiency, (2) refinance Commercial Paper Notes with permanent funding for previously financed projects, and (3) cover costs associated with issuing the bonds.

Monday after the Easter holiday brought some weakness in both treasuries and MMD. Treasuries were 8-10 basis points higher past 10 years and MMD increased its scale 3-5 basis points across the curve. Market participants felt the MMD increase was not enough, and more rate increases were expected.

On the morning of the sale, we saw the weakness in the municipal market continue. There was a heavier supply and transactions were pricing with various levels of success. This soft put bond issuance, rated PSF/AA+, generated strong early interest from several investors at the initial 3.75% rate, with additional accounts monitoring the deal. Given the weaker market conditions, the pricing was adjusted to 3.80% to maintain momentum and broaden participation.

A one-hour order period was used to navigate the market efficiently. The approach was successful, resulting in a 3x oversubscribed order book and participation from 18 different accounts. As expected, as the day went on, MMD rate increases grew to 7-11 basis points down the curve. The bonds priced on scale, and both the District and its financial advisor were pleased with the results, particularly amid a challenging market environment.