Case Study

City of Chicago

During the week of December 4th, 2017, Mesirow Financial, Inc. (“MFI”) senior managed the City of Chicago’s $235,260,000 second lien water revenue bond issuance. The City scheduled the advance refunding transaction for the second quarter of 2018, but due to pending tax code changes, accelerated the transaction to a pricing date in mid-December.

MFI worked with the City’s finance team and advisor to evaluate several structures and call options designed to maximize savings in key years and to provide flexibility in the City’s financial planning. MFI continually monitored market technicals and investor feedback and recommended pricing the transaction on the week of December 4th, one week earlier than initially anticipated.

Despite 45 transactions in excess of $100 million pricing the same week, MFI’s sales efforts garnered an overwhelming response from the investor community. Approximately 40 investors placed orders for the transaction including 15 new investors. Given the robust marketing effort, the City was able to achieve credit spreads that were significantly tighter than the City’s similarly rated wastewater transaction that priced six months earlier.