Transaction Details

Greater Texoma Utility Authority

Municipal

Lead Bookrunner

Delivering impact across multiple financings, building a stronger future for Sherman  

The Greater Texoma Utility Authority (the “Authority”) was established to assist municipalities with water, wastewater, and solid waste needs. It serves the City of Sherman, Texas (the “City”) and several nearby communities. Sherman, located about 60 miles north of Dallas and 10 miles south of the Oklahoma border, anchors the Sherman-Denison metropolitan statistical area. The Sherman-Denison MSA is home to more than 140,000 residents.

Sherman’s defining moment came in 2022 with passage of the CHIPS and Science Act (the “Act”), a $280 billion federal program to strengthen domestic semiconductor research and manufacturing. The Act aims to reduce U.S. dependence on foreign chipmakers and expand production capacity. As part of this initiative, Texas Instruments announced a $29.4 billion, 4.7 million-square-foot semiconductor fabrication plant in Sherman - the largest private economic development project in Texas history. Additionally, Globitech Incorporated selected Sherman for a state-of-the-art silicon wafer facility, the first such manufacturing facility to be built in the United States in twenty years.

The surge of investment has driven one of the most ambitious infrastructure financing programs in Texas to ensure water and sewer systems can support both industrial projects and the housing growth expected to follow. Baird has partnered with the Authority throughout, serving as senior managing underwriter on multiple financings, including one recognized as The Bond Buyer’s Small Issuer Deal of the Year.

On August 14, 2025, Baird served as senior managing underwriter for the $64,280,000 Contract Revenue Bonds, Series 2025 (the “Bonds”). This issue represented the fifth transaction for the Authority in three years. The Bonds were wrapped with BAM insurance and structured with serial maturities 2029-2045 and term maturities in 2050 and 2055. Proceeds will fund critical water and sewer improvements, provide capitalized interest, and cover issuance costs.

Investors responded well to the credit story despite a recent downgrade from S&P “A” to “A-.” With many serial maturities 2-3x oversubscribed and term maturities 7-9x subscribed, Baird repriced yields lower. The true-interest cost for the Bonds was finalized at 4.92% - nearly six basis points less than pre-pricing levels. Demand was in fact substantial enough that the 2050 term maturity priced just 7 basis points higher than a comparable “AAA” rated maturity sold that day.

The Authority’s continued success highlights the effectiveness of its financing strategy and the value of strong partnerships. Through proactive investor engagement and disciplined execution, Baird has helped the Authority manage rapid growth while sustaining market confidence. This latest financing further cements a relationship built on trust and innovation, as Sherman and surrounding communities build a future shaped by historic economic investment.