|
STIFEL
<br />f Iv. Vf I I Ir .r 1 r ryf, I r J. I it, 'rt 1 p...
<br />I'll 1•. ny 1 I I, i ,. aynlA nip t 11 1 , . 1
<br />Our banking and underwriting team structure, market, and price more bonds than the competition (that includes taxable
<br />bonds and POBs!). Our constant market presence provides a unique insight into active potential buyers (not just the top
<br />bondholders) for the City's POBs.
<br />-three -Ilpalrt I..nvestolr fargeting.Stlraategy
<br />Stifel has a three part strategy for targeting investors:
<br />1. Target Anchor Investors. First, Stifel's underwriter will
<br />identify and market to investors that buy POBs who we
<br />see as 'anchor investors.' These investors (e.g. bond
<br />funds) were large buyers of the recent Chula Vista and
<br />Orange POBs.
<br />2. Broaden Outreach. We will broaden our outreach to a
<br />growing list of POB buyers, including municipalities,
<br />and international buyers, to help drive down the
<br />interest rate.
<br />3. Leverage Private Client Group. Stifcl will leverage its
<br />Private Client platform to generate interest from
<br />individual retail and smaller money managers
<br />interested in purchasing for retirement portfolios.
<br />Targets for Anchor Orders. The
<br />accompanying table identifies about 50
<br />buyers of recent California POB
<br />issuances and details which part of the
<br />yield curve they tend to target. Based
<br />on our recent experience with the
<br />Chula Vista and Orange POBs and the
<br />significant secondary trading activity
<br />Stifel executed on other POBs, we
<br />identified several investors as anchor
<br />orders for the City's POBs, highlighted
<br />in yellow. Of course, the make-up of
<br />the anchor group is subject to change
<br />and will be re-evaluated based on
<br />insight from our sale of the Huntington
<br />Beach POBs scheduled next week
<br />(among others).
<br />nve%kiril Titio-away'.: Chula'ai1.51a 49lad 01'angp 11101 S
<br />:>oo
<br />Step 3 Leverage Private Client Group Throughout
<br />;,rlo
<br />i(1O
<br />Step 2 Broaden outreach
<br />IM a r. p is . In R rvcr'. 1 Step 1Establish
<br />Anchor Orders
<br />10
<br />>lol,
<br />lil'�k'Id,I a Set ..�U ....
<br />��
<br />,,,��San,
<br />m mmmml mmmml
<br />Rl 1 .IJ M K rl rJ
<br />)
<br />�I 1 rV /;r�llll
<br />I 1^I/I lrel f ctlP.�fi II �Ir�m [ nd
<br />.,tlh._r r ar
<br />_
<br />. 1, n.l land
<br />nnand III udinP. rx,,,,nrVun uahty
<br />A0(3h Ativi<nr
<br />Liberty Mutml Group
<br />AIG
<br />Mackay shields JV^�^^11I11111 I��II1
<br />American Family Life
<br />M .gin, P 1 1- �111Y�I���I����Y�III II
<br />A nLfc lnzurancc
<br />A ..mm
<br />�Iil{l �r�� pygkiiiMdCgank sm tr<
<br />A,ti [apiral Mpmr,
<br />npnnna'. txrhanpp nanl,
<br />3,110 Advil—
<br />Rel Air Investment Advisors
<br />neaL,�rger g�nnan
<br />II r. I „patn,pnr<
<br />„li k t Inv<r
<br />n t rU
<br />od h<hari
<br />kR.c
<br />BI kR k
<br />& f T 8
<br />.m
<br />`.� I!Iili��lrli�l�i!11Ygh PIMeu
<br />���.
<br />i
<br />Y. 1 r 1-.
<br />P
<br />N- A< M
<br />P
<br />C L r r ld
<br />RE Advisors Corporation
<br />C d F -IMy tiny_
<br />S I gCumpany
<br />„lox,AApp
<br />rare atpd IIf. mc.
<br />pprypppppp�ry
<br />.1111!�111VIII11Y11111Ya�r?K W A«cr Mgmr
<br />rid, ary T t Co of AY
<br />s ill 1 rani L1 real Llfa
<br />Fin,c NLw York St fez
<br />p
<br />SP A L Mc 1
<br />First T h gyFCU
<br />n An
<br />L,11
<br />lWasmerSchmederG
<br />Al t.A 1v<m
<br />t ypi IU,
<br />G
<br />-.
<br />I S AM
<br />W tunA—t Mgmt
<br />G t n
<br />Wilingtoncapital Mgmt
<br /><. III ii�111Ya�iYA111Ya111Y�i
<br />h xa Pon Mset Mpmt
<br />ppnn .m
<br />` �i�i�111VA11 11Yq�1 wells capital McAt
<br />W--_iutTruv_
<br />tl pp ppp
<br />Municipal Demand to Further Drive
<br />Demand. Our broker colleagues serve as investment
<br />advisors to many municipalities around the country.
<br />We've utilized the demand from these buyers to help
<br />drive down interest rates that we set in the short -end of
<br />our POn transactions (first 6 years). Over the past 6
<br />months, Stifel garnered nearly $70 million of orders from
<br />municipalities to purchase high-grade taxable bonds, as
<br />illustrated in the accompanying chart.
<br />City Council
<br />e Maw
<br />1
<br />2
<br />3
<br />4
<br />5
<br />T0t31
<br />Allcn, Tx
<br />51,ono
<br />$1,0n0
<br />sl.non
<br />51,0no
<br />51,000
<br />55.0n0
<br />Cinch Vista, CA
<br />-
<br />-
<br />-
<br />-
<br />1875
<br />1,575
<br />Cloyls, CA
<br />-
<br />-
<br />3,15n
<br />-
<br />-
<br />3,150
<br />_aguna Bearh, GA
<br />-
<br />-
<br />-
<br />-
<br />30t10
<br />2000
<br />Uc"on dc. CA
<br />-
<br />-
<br />-
<br />1.520
<br />1030
<br />J,550
<br />o.nard, CA
<br />1,000
<br />1,000
<br />,rhhnrr, Tx
<br />3,m,
<br />s,t„
<br />1.R4n
<br />1, 17,
<br />11,97,
<br />San Antonio Watcr Systcm, Tx
<br />3,000
<br />4,000
<br />7.000
<br />rasadcna. CA
<br />1,J00_.�00
<br />3,000
<br />2,J00
<br />4035
<br />aacilancis, CA
<br />-
<br />-
<br />1.U0U
<br />2,22a
<br />-
<br />J.225
<br />hpu I,." , ,
<br />-
<br />-
<br />-
<br />1 0I111
<br />-
<br />l'oul)
<br />,ant, (23 �.L,171,5A
<br />SM81202
<br />1 1.640
<br />Total
<br />$6,305
<br />$11,655
<br />$31,630
<br />9,420
<br />$10,940
<br />$ 69,950
<br />UV of SAntta Ana I Proposal to Provide Underwriting Services Page 13
<br />
|