Transaction Details

City of Pearland

Municipal

Lead Bookrunner

The City of Pearland (the “City”) is one of the fastest-growing suburbs in Greater Houston, serving as a dynamic hub spanning Brazoria, Fort Bend, and Harris Counties. Its close proximity to Houston allows residents and visitors to enjoy all the city has to offer, including professional sports, world-class cultural amenities, and abundant recreational opportunities.

On July 28, 2025, Baird served as senior managing underwriter for the City’s $18,955,000 Certificates of Obligation, Series 2025A (“Series 2025A”); $33,400,000 Permanent Improvement and Refunding Bonds, Series 2025 (“Series 2025”); and $115,480,000 Certificates of Obligation, Series 2025B (“Series 2025B”). Proceeds from the Series 2025A bonds will fund a variety of public improvements including a generator for the Hickory Slough Storm Detention Water Pump Station, the Hillhouse Road Annex Phase II, an Emergency Distribution Warehouse, enhancements to the Knapp Activity Center and Clear Creek Trail Segment 5, street and bridge improvements, and related issuance costs. The Series 2025 bonds will support drainage and roadway improvements, enhancements to parks and Fire Station No. 7, refund certain outstanding obligations, and cover issuance expenses. Series 2025B proceeds will fund the expansion and improvement of the Barry Rose Water Reclamation Facility, along with other upgrades to the City’s water and sewer system and associated costs of issuance.

Each AA/AA+ (S&P/Fitch) rated series was structured with principal payments through 2055 and pre-marketed with identical spreads. As expected, the larger Series 2025B garnered the strongest demand with orders from 30 unique institutional investors. Maturities 2032 through 2055 were 2-6x subscribed, which enabled yields in those spots to re-price 1 to 5 basis points lower. Demand for the smaller Series 2025 and 2025A blocks was more modest but improved as Baird continued marketing efforts after the order period. Final subscription levels ranged from 1–2x in most maturities, with the 2050 and 2055 term bonds seeing increased interest after coupon adjustments from 5.25% to 5.00%. Baird committed $2,785,000 in capital to support maturities in the 2028–2030 range across all three series. The successful pricing reduced the City's total debt service by $639,260 compared to pre-pricing levels and generated net present value refunding savings of $804,306.