Dallas County, Texas
Combination Tax and Parking Garage Revenue Certificates of Obligation, Series 2016
SCS leads the second largest bond transaction in the County’s history and steps up to underwrite $4.42 million in unsold bonds
The second largest bond transaction in the County’s history and Siebert Cisneros Shank’s fourth senior managed transaction for the County was priced in August 2016. The Bonds were rated Aaa/AAA/NR and proceeds were used for the renovation of County buildings. The bonds were structured as level principal with serial maturities from 2017 – 2031.
Siebert Cisneros Shank explored lower 3% and 4% couponing approaches in the 2030 and 2031 maturities to meet investor demand. At the end of the order period, the underwriting syndicate submitted $423 million in total orders from 32 investors. Our firm submitted $290 million priority orders (99.8% of total priority orders submitted). All maturities were subscribed for on a priority basis (1.06x to 3.68x) except for the 2019 and 2030 maturities.
After the order period, SCS recommended reducing interest rates by 1 to 4 basis points on ten of the maturities that were oversubscribed on a priority basis. Our firm stepped up to underwrite the $4.42 million in unsold bonds in the 2019 maturity for the benefit of the County. The bonds that were initially unsold in the 2030 maturity were picked up by an investor on a priority basis after the order period. The all-In TIC was 1.939%.