Transaction Details

Redevelopment Authority of the Village of Slinger

Municipal

Lead Bookrunner

Baird’s Wisconsin team served as sole managing underwriter on the $14,990,000 Redevelopment Authority of the Village of Slinger Lease Revenue Bonds. The bond proceeds funded the construction and equipping of a new police station in the village.

Unlike most Wisconsin issues, the bonds were double tax-exempt. Baird’s structuring recommendations and security provisions were instrumental in securing a Moody’s A2 rating, aligned closely with the village’s A1 GO rating. The bonds are callable beginning in 2034 with a final maturity in 2050.

The week prior to pricing was one of the most unsettled interest rate environments ever experienced in the municipal bond market. Uncertainty surrounding tariffs coupled with anxiety regarding potential trade wars between the United States and its trading partners drove massive vacillations in municipal interest rates. The interest rate environment stabilized somewhat by the Monday before pricing. Faced with high pent-up supply, due to issues postponed nationwide the week prior, Baird aggressively marketed the Bonds to investors throughout the day Monday. By Tuesday morning, the market tone was firmer. An early morning price talk period commenced followed by an order period mid-morning.

There was substantial demand for the bonds. Serial maturities in 2030 through 2032 were 2.6 to 4.3 times oversubscribed, and term maturities in 2045 and 2050 were 6.2 and 2.3 times oversubscribed respectively. Interest rates for those maturities were reduced 3-6 basis points (0.03% – 0.06%) and Baird underwrote. Baird saw participation from 14 unique investors, including retail. The issuer’s goals were achieved, and project funds were secured in a turbulent market environment.