City of San Antonio
General Improvement Refunding Bonds, Series 2014
Siebert Brandford Shank senior manages tenth deal for City of San Antonio since 2003
As Siebert Brandford Shank’s tenth senior managed transaction for the City of San Antonio since 2003, this repeat appointment in November of 2014 was a testament to the City’s satisfaction with the firm’s investment banking services, which include continual refunding analysis updates and the ability to aggressively price transactions.
The Bond’s underlying ratings were Aaa/AAA/AAA and came to market in a large supply week right before the Thanksgiving holiday. The City’s transaction had several competitors including some naturally triple-A rated school districts that also had the support of the Texas Permanent School Fund guarantee. With the larger supply and a municipal bond market that was down a bit, Siebert Brandford Shank managed to price the transaction, exceeding the expectations of the City and its Co-Financial Advisors. The firm utilized a sealed bid in the first two maturities and offered 5.00% premium coupon bonds and was priced 1 to 2 basis points lower than a comparable Houston Independent School District general obligation transaction in four maturities. Due to this aggressive pricing, the City generated net present value savings of $6.83 million or 12.13% of the refunded par amount which will produce an average annual debt service savings of $676,814 per year until 2025.