Transaction Details

Community Unit School District Number 4 Williamson, Jackson and Franklin Counties (Herrin)

Municipal

Lead Bookrunner

Partnering with Illinois K-12 Districts to Achieve Efficient Financing in a Shifting Market

Community Unit School District Number 4 Williamson, Jackson and Franklin Counties (Herrin) (the “District”), serves the city of Herrin and surrounding areas in southern Illinois. The District provides comprehensive education from elementary through high school and is supported by a strong, community-driven commitment to student achievement and modern learning environments.

On November 17, 2025, Baird served as sole managing underwriter for the District’s $17,185,000 General Obligation Refunding School Bonds (Alternate Revenue Source), Series 2025 (the “Bonds”). Bond proceeds were used to refund certain outstanding obligations and pay issuance costs. The Bonds were rated AA (stable outlook) by Build America Mutual and A (negative outlook) underlying, with a final maturity in 2044.

The Bonds attracted strong investor attention, and through focused engagement and disciplined execution, the sale achieved competitive pricing and favorable results for the District. The issue was generally 1–2x subscribed across most maturities, with structure adjustments during the order period that lowered borrowing costs for the District.

Notably, Baird’s execution resulted in pricing levels that came through comparable transactions from issuers with stronger credit ratings and stable outlooks. This outcome underscored investors’ confidence in the District’s credit story and reflected Baird’s ability to effectively position the credit in a dynamic market environment.

A key differentiator in the transaction was Baird’s use of a discount structure that not only outperformed pre-marketing expectations but also stood out among comparable financings. This innovative approach leveraged discounts strategically to drive down the true interest cost (TIC), an uncommon tactic in the current market that delivered meaningful savings for the District.

The final structure included an additional 4% coupon maturity yielding 4.20%, which enhanced overall results and lowered borrowing costs by approximately 15 basis points compared to the initial 5% coupon in that year.

Baird’s close coordination with the District led to a successful refunding that positions the District for continued financial stability and supports its long-standing commitment to educational excellence and community investment.