Transaction Details

Village of Oswego

Municipal

Lead Bookrunner

On June 25, 2025, Baird served as sole underwriter on the negotiated sale of the Village of Oswego’s $19,735,000 General Obligation Bonds, Series 2025A and $3,600,000 Taxable General Obligation Bonds, Series 2025B which carried a “Aa2” Moody’s rating. The 2025A Bonds generated $20 million in proceeds to finance waterworks and sewerage system improvements, including the Village’s connection to the DuPage Water Commission system. The 2025B Bonds generated $3 million in proceeds to finance phase two of a downtown parking garage for the Hudson Crossing development.

Baird assisted the Village in drafting a rating agency presentation. It was extremely important to prepare for this discussion given the Village has sizable debt on the forward calendar to fund water related projects. By highlighting the Village’s strong credit profile, despite its proposed future debt, the Village was successful in maintaining its “Aa2” rating.

Baird initiated pre-marketing two days prior to pricing to give investors ample time to review the credit in a fluctuating market environment. On Series 2025A, Baird received $32,300,000 in orders (1.6x the par amount) with oversubscriptions in the first 5 maturities by up to 3x and in the final maturity by 4.3x. Because of the oversubscriptions, Baird was able to tighten (lower) interest rates in four of the early maturities by 2 basis points (0.02%) and the final maturity by 4 basis points (0.04%). On taxable Series 2025B, Baird received $10,300,000 in orders (2.9x the par amount) with oversubscriptions in 9 of 10 maturities by up to 5x. Because of the oversubscriptions, Baird was able to tighten (lower) interest rates in five maturities by 3 to 5 basis points (0.03-0.05%). Overall, these price adjustments lowered the District’s borrowing cost by ~$75,000 or 2 basis points (0.02%).

Baird was able to bring in 21 different investors on the 2025A Bonds and 10 investors on the 2025B Bonds. The 2025A Bonds had a true interest cost of 4.79% over the 25-year term and the 2025B Bonds had a taxable true interest cost of 5.32% over a 15 year term.