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Item 23 - Pension Debt Refinancing Update and Underwriter Selection
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Item 23 - Pension Debt Refinancing Update and Underwriter Selection
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23
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5/18/2021
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iv. Indicate level of commitment of each of the assigned key personnel and how you will ensure the accessibility of key personnel to the City. <br />Please reference our response to Question V below, which outlines BofA's key personnel. <br />V. Resumes for the professional staff assigned to the engagement. Include a brief biography of each person specifically addressing experience relevant <br />to the City's proposed financing. A discussion of educational background and relevant experience of the Partner, Supervisor(s) and Staff which will be <br />assigned to this engagement as well as their assigned responsibilities under the proposal shall be included. <br />BofA has assembled a dedicated POB Team to assist California issuers with refinancing their Ca1PERS UALs. <br />This "one team" approach allows us to seamlessly convey the latest structuring, rating and investor insights <br />to clients in this rapidly changing market segment. Holly Vocal and Jeffrey Bower, as primary and secondary <br />contacts, will ensure that the full resources of BofA and the team are dedicated to the City. Further, and as <br />shown in the table below, each member has significant senior managed experience with California POBs. <br />Role <br />Team Members <br />Office Location <br />Experience <br />California POBs <br />% of Work <br />Holly Vocal, Managing Director <br />San Francisco <br />17 yrs <br />Senior Managed: 5 <br />40.0% <br />Jeffrey Bower, Managing Director <br />Los Angeles <br />32 yrs <br />Senior Managed: 7 <br />5.0% <br />Core Public <br />Jorge Rodriguez, Managing Director <br />New York <br />17 yrs <br />Senior Managed: 6 <br />10.0% <br />Finance Team <br />Doug Baron, Director <br />Los Angeles <br />13 yrs <br />Senior Managed: 3 <br />10.0% <br />Geoffrey Sauers, Vice President <br />Los Angeles <br />8 yrs <br />Senior Managed: 5 <br />15.0% <br />Katy Liu, Associate <br />Los Angeles <br />5 yrs <br />Senior Managed: 5 <br />15.0% <br />Underwriting <br />Catherine Crews, Managing Director <br />New York <br />16 yrs <br />Senior Managed: 7 <br />5.0% <br />Brendan Troy, Managing Director <br />New York <br />22 yrs <br />Senior Managed: 2 <br />As Needed <br />Rating Strategies <br />Brad Gewehr, Senior Vice President <br />New York <br />36 yrs <br />Senior Managed: 8 <br />As Needed <br />Jorge Rodriguez, Managing Director, is BofA's national pension financing specialist with expertise with actuarial <br />and strategic asset allocation matters. Jorge is able to bring his financial modeling and scenario analysis <br />experience to bear in assisting the City and its Municipal Advisor with structuring decisions. Doug Baron, <br />Director, will serve as a project banker. Doug offers a wealth of experience working in California public finance, <br />having previously served as Manager of Public Finance and Investments at the County of Los Angeles and having <br />managed more than $1 billion of pension bonds while at the County. Geoffrey Sauers, Vice President, and Katy <br />Liu, Associate, will assist with the execution efforts. Geoffrey and Katy have led the execution efforts for over <br />$10 billion in municipal offerings, including POBs for Azusa, Downey, Gardena, Huntington Beach, Manhattan <br />Beach and El Cajon. <br />Credit Specialist: Complementing our team is a veteran credit strategist who provides expertise in structuring <br />pension obligation financings and working with the rating agencies as well as investors on credit -related <br />issues.considerations. Brad Gewehr, a Senior Vice President in New York has worked over the past 20 years with <br />various issuers and their finance teams to develop optimal pension obligation structures to increase funding <br />ratios while maintaining affordability. With his extensive knowledge of actuarial and accounting principles, he <br />has helped ensure that pension liabilities and expenses are properly presented to rating agencies and investors. <br />Most recently, Brad worked on pension or OPEB financings for the cities of Riverside, Gardena, Azusa and El <br />Cajon as well as for Gainesville (FL), the State of Illinois and the Kansas Development Finance Authority. <br />Underwriting: Catherine Crews, Managing Director, will serve as the lead underwriter for the City's POB <br />financing. Catherine has 16 years of underwriting experience with a particular focus on California issuers and <br />has served as the lead underwriter for over $2.0 billion of POB financings in the last five years. Brendan Troy, <br />Managing Director, will provide additional underwriting support. Brendan offers the City 22 years of experience <br />for numerous credits nationally as well as extensive experience with California general fund issuers. <br />Resumes for our team are provided under Appendix B. <br />vi. A description of the Proposer's experience in providing similar services to those requested in this RFP. <br />The City's RFP outlined a scope of services expected of its senior manager. In the following table, we detail BofA's <br />value-added approach and how we've provided similar services on recent POB transactions. Notably, we've <br />helped prepare customized plans of finance based on our clients' unique savings and policy objectives. We <br />provide some highlights of these various funding approaches below. <br />BofA Senior -Managed POB Experience — Tailored Pension Funding Approaches <br />City of Riverside City of Azusa City of El Cajon City of Downey <br />$432 Million 2020 POBs $70 Million 2020 POBs $147 Million 2021 POBs $114 Million 2020 POBs <br />Page 3 BofA SECURITIES ���� <br />
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