Transaction Details

Orange County

Municipal

Lead Bookrunner

Orange County, North Carolina is a growing, economically diverse community located in the heart of the Research Triangle, home to the University of North Carolina at Chapel Hill and anchored by strong education, healthcare, and research sectors. The County benefits from its proximity to major employment centers, including UNC Health and Research Triangle Park. Its ongoing investment in infrastructure, housing, and public services supports continued growth and positions the County as a dynamic and forward-looking community.

On June 5, 2025, Baird served as senior managing underwriter to Orange County, North Carolina (the “County”) on its $67,360,000 Limited Obligation Bonds, Series 2025 (the “Bonds”). Proceeds from the Bonds will be used to finance the acquisition, construction, equipping and improvement of certain County facilities; and pay certain costs incurred in connection with the issuance of the Bonds. The Bonds were rated Aa1 (negative outlook) and structured with a final maturity in 2045, spanning 20 years.

The Bonds were priced following the strong performance of a comparable deal earlier in the week. Baird adopted an aggressive pricing strategy, taking advantage of positive early market sentiment following a favorable Initial Jobless Claims report. The front end of the curve was bumped prior to pricing, demonstrating responsiveness to real-time market signals.

However, mid-day headlines regarding U.S.–China diplomatic developments led to weakening in Treasuries. Despite this shift, the deal garnered strong interest, particularly in the longer discount maturities, while books on most other years ranged from 1–2x subscribed. The 2038 and 2039 maturities required targeted adjustments to improve subscription and syndicate positioning. In our role as underwriter, Baird deployed capital at the conclusion of pricing in support of the issuance. At the conclusion of the sale, approximately $4 million of bonds in the 2028, 2032, and 2037 maturities remained available for purchase, an expected and manageable outcome given the overall strength of investor demand.