HomeMy WebLinkAboutPresentation #23PENSION DEBT REFINANCING
UPDATE AND UNDERWRITER
SELECTION
PENSION DEBT REFINANCING UPDATE AND
UNDERWRITER SELECTION
Competitive Process via RFP
10 proposals received, 7 interviewed in March
Evaluation criteria included experience, Investor Outreach, Structuring Ideas,Analysis of
Transaction, Marketing Plan for sale of Debt
Three (3) Underwriters Selected
Bank of America Securities, LLC (BofA) , Senior Manager (Los Angeles, CA)
Stifel Financial Corp. (Stifel), Co -Manager (Los Angeles, CA)
Ramirez & Co, Inc. (Ramirez), - Co -Manager (Los Angeles, CA)
Determination in selecting multiple Underwriters ("Syndicate")
Complementing strengths with each Underwriter
Increases exposure to all investor types (national, international, and government entities)
B OF A TEAM
BofA Securities, Inc. (Senior Manager)
Holly Vocal, Managing Director in San
Francisco, has 17+ years of public
finance experience. Holly is well -versed
in POB structuring and credit
considerations, and her recent POB
experience includes transactions for the
cities of Azusa and Downey,
Jeff Bower, Managing Director in Los Jorge Rodriguez, Managing Director in
Angeles, has 30+ years of public finance New York, has 17+ years of public
experience.Jeff's POB financing finance experience. He leads BoWs
experience includes transactions for the quantitative efforts in pension funding,
cities of El Cajon, Gardena and and has been involved in the structuring
Manhattan Beach as well as the counties of over $5 billion in POBs, including
of Sacramento, Sonoma and San Diego. transactions for Riverside and Downey.
Significant retail and institutional distribution network that extends globally
Experience leading various Underwriting Syndicates
# 1 ranked underwriter of taxable municipal bonds nationally ($34.5 billion in par since 2018)
# 1 ranked underwriter of pension -related financings nationally ($1.7 billion in par since 2018)
Select recent experience issuing Pension Obligation debt for the Cities of:
Riverside, CA 2020 POBs $432.0 million
El Cajon, CA 2021 POBs $147.0 million
Downey, CA 2021 POBs $1 14.0 million
1�
BofA SECURITIES
STIFEL TEAM
Stifel (Co -Manager)
John Kim,
Managing Director
Primary Contact
John has more than 24 Years of Public Finance
Experience
.� Member of the Firm's Executive Committee
Thomas Jacob
Managing Director
Secondary Contact
Tom has more than 14 Years of Public Finance
Experience
Assisted Issuers with Sale of >$5 Billion in Par Value
Stifel is a Leading Underwriter of California Municipal Bonds and Pension Obligation Bonds
Expertise in Developing Presentations to Rating Agencies (i.e. Standard & Poor's —"S&P")
Recent Senior or Soie Managed Experience Issuing Pension Obligation Debt:
Huntington Beach, California > $364.0 million 2021 Pension Obligations Bonds
Orange (City), California > $286.0 million 2021 Pension Obligations Bonds
ChulaVista, California > $350.0 million 2021 Pension Obligations Bonds STIFEL
RAMIREZTEAM
Ramirez & Co, Inc. (Co -Manager)
�.� �-Ta,4ST Michael Me is
Raul Amezcua 1
Lead Banker
A Co -Lead Banker
�, ,r ,1US71
Senior Managing lok Senior Vice President A
. Director 15+ years of experience .�
30+ years of experience CA POB specialist (10 CA
Senior managed over 250 POB/pension transactions)
issues with a par amount B.S. in Environmental Economics
over $30 Billion from UC Berkeley
MBA from UCLA, B.S. USC
Dr. Fernando Guerra
Senior Banking Support
Managing Director
30+ years of experience
Ph.D. and M.A. in Political Science from
the University of Michigan, B.A. in
International Relations from USC
Underwriter for two most recent Santa Ana bonds (Successor Agency Tax Allocation Refi & Gas Tax Refi)
Experience with City's Credit & top ranked underwriter of CA POBs (over 25% market share since 2017)
Recent Experience issuing Pension Obligation Debt for the Cities of:
City of Pomona, California > $219.9 million
City of El Monte, California > $1 18.7 million
R A M I R E Z
City of Hawthorne, California > $121.8 G R4W SII`EIII
TIi US
CELEBRATING 50 YEARS
NEXT STEPS
Validation Process
Filed with the Orange County Superior Court (March 2021)
• Potential Hearing Date in August
June 2021 thru August 2021
Await County of Orange Superior Court decision (Validation Process)
Pre -pay annual Ca1PERS UAL Payment
Confirm Ca1PERS portfolio Investment Returns
Receive annual Cal PIERS Valuation Reports
September 2021 (tentatively)
Bond documents, including Preliminarily Official Statement and Bond Purchase agreement, for City
Council consideration