HomeMy WebLinkAbout1992 08 31 Workshop
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CMC
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MEMQ
To:
From:
Date:
Subject:
City Commissio
James L. Lentz
August 26, 1992
Selection of Unde riters for proposed Water and Sewer Refunding Bonds,
Series 1992 and Improvement Refunding Bonds, Series 1992.
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On the above date the selection committee (Commissioner Cindy Kaehler, Mr. Dick
Rozansky, Mr. Harry Martin) met with Tom Lang, Mike Stewart from my office and
myself to review the proposals reviewed on August 21, 1992. The following criteria were
noted in the evaluation of the proposals:
1) Components of Gross Spread (total commission to sell the issue)
2) Interest Rate Scale (the interest rate to be paid on the bonds)
3) Local Presence
4) Knowledge of System (consolidation)
5) Prior contact with City Staff
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Based on the above noted criteria with emphasis on gross spread, the committee voted to
recommend Prudential Securities, Inc. and Gardnyr Michael Capital, Inc. * to be senior
managers for the Water and Sewer Refunding Bonds, Series 1992. The other four firms
would be included as selling group members with allotments of bonds as follows:
CAPITAL MARKET CONSULTANTS, INC.
108 South Court Avenue · Orlando, Florida 32801
(407) 426-9611 Fax: (407) 426-7835
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1) William R. Hough & Co. -
2) Leedy Corporation-
3) A.G. Edwards & Sons, Inc. -
4) Harcourt Ryder Capital, Inc.-
*Gross spread $6.25/bond
$IMM
$IMM
$IMM
$500 M
In addition, primarily due to the fact that they were the only firm to recommend and
analyze the issue, William R. Hough & Co. and Leedy Corporation* were recommended
to be senior managers for the Improvement Refunding Revenue Bonds, Series 1992. The
other four firms would be included as co-managers with allotments of bonds as follows:
1) Prudential Securities, Inc. . -
2) Gardnyr Michael Capital, Inc. -
3) A.G. Edwards & Sons, Inc. -
4) Harcourt Ryder Capital, Inc.-
*Gross spread $7.52/bond
$350 M
$350 M
$350 M
$175 M
It was felt that by including all firms in the issues and rewarding the senior managers for
their performance the City would maintain a positive relationship with all fmns for future
transactions. In addition, it was noted that the escrow securities for each refunding would
be put out for a minimum of three bids.
The City Staff along with the financial advisor and the City's bond counsel have started
working on the proper documents to complete the transactions. The attached financing
schedule tentatively highlights timing of events subject to changes in market conditions.
I would recommend the Commission approve the selections previously noted and further
appoint a finance committee made up of the present selection committee to direct the
efforts of the working group (financial advisor, bond counsel and underwriters).