Transaction Details

Community College District No. 531 (Shawnee Community College)

Municipal

Lead Bookrunner

Securing Favorable Borrowing Costs Amid Post-Holiday Market Volatility  

Background
Baird served as Sole Managing Underwriter for Community College District No. 531, Counties of Union, Alexander, Massac, Pulaski, Johnson, and Jackson and State of Illinois (Shawnee) (the District), on two series of bonds: the $2,885,000 Taxable General Obligation Community College Bonds, Series 2025, and the $2,420,000 General Obligation Community College Bonds, Series 2025D. The District provides essential higher-education and workforce-training services across southern Illinois and maintains a solid financial foundation supported by underlying A+ ratings, further enhanced to AA through insurance from Assured Guaranty.

The offering consisted of short-dated taxable maturities from 2026 through 2030 and tax-exempt maturities from 2030 through 2032. Though modest in size, the transaction offered an important opportunity to support the District’s ongoing capital plans while demonstrating Baird’s ability to deliver efficient execution for Illinois education issuers.

Opportunity
The District entered the market during the week immediately following Thanksgiving, a period often marked by reduced trading activity and increased sensitivity to economic news. In the days leading up to pricing, U.S. Treasury yields rose 6 to 8 basis points following developments in the Japanese bond market, creating a more challenging environment for issuers planning to sell during a traditionally quiet Monday session.

Despite these conditions, the District identified an opportunity to secure cost-effective funding through a short-dated structure that aligned well with investor demand for high-quality Illinois credits. Successfully capturing that opportunity required thoughtful timing, early outreach, and a focused approach to market engagement.

Solution
Baird developed a pre-marketing strategy that accounted for the holiday week and ensured investors had sufficient time to evaluate the offering. Pre-marketing began the Tuesday prior to pricing, enabling materials to be circulated before the holiday slowdown and allowing the team to gather meaningful investor feedback in advance. The taxable series was initially offered on a yield basis to provide additional clarity for investors and help establish early momentum.

Throughout the process, Baird monitored rate movements and communicated regularly with investors to reinforce confidence in the structure despite broader market volatility. This preparation positioned the District to approach pricing day with a well-informed investor base and a stable foundation for execution.

Implementation
Demand for both the taxable and tax-exempt series was steady throughout the order period. The taxable maturities in 2029 and 2030 generated particularly strong interest, reaching 2.5-3.5x subscription, while other maturities drew 1-2x subscription. The tax-exempt series also performed well, with the 2030 maturity receiving enough interest to support improved execution during pricing.

The consistency of investor participation allowed Baird to maintain the initial scale even as Treasury yields moved higher. With firm demand in key years, the team adjusted pricing on several maturities, improving yields by 2 to 3 basis points on the taxable 2029 and 2030 maturities and by 2 basis points on the 2030 tax-exempt maturity. Pricing moved smoothly, with all orders addressed promptly and consistent investor interest throughout. The results showed strong support for the District and reflected the benefits of careful preparation and coordinated execution.

Results & Impact
The financing met the District’s objectives by securing favorable borrowing costs during a time of elevated market volatility and reduced post-holiday liquidity. The ability to refine pricing despite rising benchmark yields highlighted investor confidence in the District and in the insured structure.

Through thoughtful preparation, early outreach, and disciplined market communication, Baird delivered smooth and effective financing that supports the District’s ongoing capital and operational needs while reinforcing a strong working partnership with the issuer.