To: MAYOR AND CITY COUNCIL
From: MARNI RUHLAND, FINANCE DIRECTOR
TITLE
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DISCUSSION AND POSSIBLE ACTION REGARDING APPROVAL OF STIFEL, NICOLAUS & COMPANY, INCORPORATED (STIFEL) AND RAMIREZ & CO., INC. (RAMIREZ) TO PERFORM UNDERWRITING SERVICES AS JOINT SENIOR MANAGERS FOR THE PROPOSED CALPERS UNFUNDED ACCRUED LIABILITY (UAL) REFINANCING
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EXECUTIVE SUMMARY
A Request for Qualifications (RFQ) was sent to sixteen underwriting firms, and nine responded with their Statement of Qualifications (SOQ). Of those nine, six were interviewed by a panel of City and Kosmont Transactions Services (KTS) staff and Budget and Finance Commissioner Jerry Woodham. For the proposed CalPERS UAL refinancing's underwriting services, the panel recommended to the Budget and Finance Commission the selection of Stifel and Ramirez as joint senior managers, and the Commission unanimously agreed.
Although it remains a goal of City staff to issue bonds prior to the FY 2021-22 CalPERS UAL payment, it may be possible with a lease revenue bond to take advantage of the prepayment discount in July 2021 and obtain reimbursement for that payment from the bond proceeds if an earlier issuance is not possible.
BACKGROUND
The City is assembling its bond financing team as it looks to refinance its CalPERS UAL. Following City Council's approval of the bond counsel and disclosure counsel, all the parties are currently in place with the exception of the underwriter.
As described in the attached RFQ, the underwriter will be responsible for the following.
* Assisting in structuring, marketing and selling the bonds
* Identifying, evaluating and explaining alternative financing structures
* Evaluating and making recommendations for the bond sizing and structuring
* Assisting with financial modeling
* Seeking the highest possible credit ratings
* Providing feedback for proposed financing structures
* Assisting with presentations
* Reviewing all financing documents
* Recommending bond sale tim...
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