Broward County Water and Sewer, 2015A, B

Broward County, Florida
Water and Sewer Utility Revenue Refunding Bonds,
Series 2015A and Series 2015B

Broward County Water and Sewer realizes significant savings

Siebert Cisneros Shank served Broward County as senior manager for this transaction in June 2015. Rating agency upgrades, strong investor outreach, and sales force marketing, combined with flexibility and patience by County finance staff in approaching the pricing schedule, enabled the transaction to price in optimal market conditions, leading to attractive pricing levels and significant savings for its water and sewer system.

Siebert Cisneros Shank was integrally involved with the financing team in crafting the rating agency strategy and participating in onsite visits, which led to the County receiving upgrades from Moody’s and S&P.

In the weeks leading up to the pricing, the 15-year MMD had increased by as much as 17 basis points and heavy municipal supply put pressure on investors’ capacity. As a result, the County’s transaction posted the POS and investor presentation early in June with a par amount of only $66 million.

Due to market volatility, we recommended the County remain highly flexible and to proceed with pricing in advance of both the upcoming FOMC announcement and the estimated $10 billion in new issue supply for the following week. Despite the volatility and difficult market conditions of the preceding weeks, our underwriter recognized a window of positive market opportunity and we recommended pricing.

Our sales force heavily marketed the transaction to investors seeking lower yields. The credit was strong and with very strong investor interest, we entered the market with yields that were tighter than had been discussed the day before.

Investors were very attracted to this deal because of the County’s strong credit and the structure of the transaction. The transaction received over $800 million in institutional orders from 32 different investors, 24 of which were not among the top 20 existing holders of the credit. Siebert Cisneros Shank placed 99.8% of the orders.