Transaction Details

United City of Yorkville

Municipal

Lead Bookrunner

Baird served as sole manager on the negotiated sale of the United City of Yorkville’s $25,000,000 General Obligation Bonds (Revenue Source), Series 2025A and $38,650,000 General Obligation Bonds (Revenue Source), Series 2025B which carried a “AA” S&P rating and “AA+” Fitch rating.

There was heavy supply (over $14.36 billion) the week of pricing. Despite Monday being a holiday, Baird proposed a pricing on Tuesday to get a head of the magnitude of supply to price Wednesday and Thursday. Baird Implemented a 2-day marketing strategy to give investors ample time to review the credit in a fluctuating market environment. Our efforts resulted over $322 million in orders (5.1x total par) from 33 different investors with allotments going to 30 different accounts.  To our knowledge, Baird added 25 new City bondholders.

The Series 2025A had oversubscriptions in 11 of the 13 maturities from 2x to 10.7x which allowed us to lower yields 1 to 9 basis points (0.01% to 0.09%) in 11 maturities.   The Series 2025B had oversubscriptions in every maturity from 2.6x to 7x which allowed us to lower yields 2 to 7 basis points (0.02% to 0.07%) in every maturity.  We were also able to achieve discount bonds (lower coupons) the last 4 maturities which improved the City’s overall cost of funds dramatically.

From pre-marketing to final pricing, Baird’s price and coupon adjustments lowered the City’s debt service cost by over $1.1 million collectively and lowered the true interest cost by 10 basis points and 8.5 basis points to 4.42% and 4.265% on Series 2025A and 2025B, respectively.

Baird’s final spread to call was an average of 8 basis points (0.08%) through a recent comparable Illinois transaction in 2031 to 2042 (range of 5 to 15 basis points in each maturity) and was 13 to 15 basis points through this transaction in 2043 to 2045 where Baird was able to achieve discount bonds.