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STIFEL
<br />Mairlw4i!ng IPla ru
<br />Stifel will employ a 3-point marketing plan for the City's POBs.
<br />1. Early Outreach to Anchor Investors. Beginning about one month before the POBs come to market, Stifel will begin to
<br />communicate with potential anchor investors. Stifel's California based salesforce will target domestic institutional
<br />accounts while working concurrently with Stifel Europe to communicate with international accounts. Based on their
<br />feedhack we can hegin tracking where they are haying and trading similar credits, giving us i hetter understanding of
<br />where they will price this credit.
<br />2. Drone Video/Investor Presentation. Many underwriters have used 'flat'
<br />investor presentations to accompany the sale of POBs. We would prefer
<br />to show a more dynamic presentation of the community, describe the
<br />vision that Council and management have for the City and provide
<br />context of the City's strategic location within Orange County. As noted
<br />in our cover letter, along with our proposal, we provide a brief video
<br />that would be used to market the City's POBs.
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<br />3. Local Retail Marketing Plan. Newspaper ads in local publications (both
<br />print and online editions) will be used to publicize the bond sale to "
<br />residents. Stifel would place ads, at no cost to the City, in publications like the Los Angeles Times, the Orange County
<br />Register and The Daily Pilot. Recent examples of our local retail marketing campaign efforts are provided in the
<br />accompanying graphic.
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<br />For a transaction as large as the City's, we do not believe a private placement will produce a better result than a public
<br />bond sale. A private placement would be set as one blended interest rate (with more weight given to the final maturity of
<br />the POBs) whereas a public bond offering would enable the City to divide the issuance into smaller pieces by serializing
<br />the Bonds (years 1-15) and then splitting up the remainder of the issue with multiple term bonds.
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<br />We have had the pleasure of serving, as lead manager of a multi -firm syndicate on several recent POBs, including the
<br />Orange POBs that priced last Thursday (3/3) and upcoming Huntington Beach POBs, which are scheduled to price next
<br />work. Our goal as lead manager is to foster a collaborative environment that leverages the strengths of each co-
<br />manager to secure the best possible outcome (lowest borrowing cost) for our issuer clients. As mentioned in our cover
<br />letter, at the request of the city, advisor and in coordination with our co -manager, we seamlessly expedited the pricing
<br />period frorn a 2 lu 1-day process fur the recent Orange POBs to lock -in aggressive inlereal rates arnidsl market vulalilily.
<br />The strategy paid off as, over the next two days, US Treasury yields increased up to 9 basis points throughout the yield
<br />curve.
<br />City Council
<br />23 — 216
<br />5/18/2021
<br />UY of Santa Ana I Proposal to Provide underwriting Services Page 14
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