|
i I:11-C':I 1A11.11,11
<br />h IV
<br />'l ALURL Lap.tal - - - - - - - 8
<br />1U Acres Capital - - - - - - - 8
<br />11 Bain Capita'.. - - - - - - - B
<br />12 Be ksn le Hathaway - - - - - - - - - B
<br />13 BIaCkROik -ON- - - - - - - - - - - 8
<br />14 rleherty&Crwnllne - - - - - - - - - - - - - 8
<br />is GSAM ON 8
<br />r xfjand I(we".ta,r L»,rnnrgd: Our proprietary database has identified 186 investors that have only purchased
<br />one or two FOB transaction in the primary or secondary market. We will conduct an aggressive marketing
<br />campaign to generate demand from this investor base. Key investors include: AIG, Alliant, Nor I horn Trust,
<br />Nluvoen, P[IIefsrdt;e, Wlufeloven, L�A(on Vance, rcder,Qed, anionll (,,then,:;
<br />*I w Cvov, ()VIq ,and Non rr,idlhon,al Rllylrrs_ The resurgence of California POBs started with our 2017
<br />Brawley POB, primarily sold to hedge funds and cross -over investors, such as Hopwood Lane, Multi -Bank,
<br />Spring Lake Asset Management and Wall Street Access. The POB market has evolved and today, the largest
<br />buyers are large bond funds and insurance companies such as Wells Capital and Allstate. As the market
<br />has matured, Hedge Funds, SMAs, professional retail investors, pension funds and local governments have
<br />become the non-traditional buyers that could expand demand for the City's transaction. Below we list
<br />key cross -over buyers within these sectors. The list is not exhaustive and represents only specific cross-
<br />over buyers identified in our proprietary POB investor model.
<br />Hedge Funds and Proprietary Trading Desks: IVlantoiri r.Apmal I Lr, Mmil Irno (..ilrlial, Murrill Lynch
<br />Prnpir,kili g De�.k, hluefin Ir.Idong, ra•rltova G-Iy,etal, Morg.an'A:iiiley Arb, )mong others SMAs and Professional Retail: R,inta ri,irtaara A:,sct Manat;nment
<br />Pension Funds and Local Gov- Ventura County ;ant! I os Anj!ew, , DWP (poll (:hav,d Pomona PORB,)
<br />A.R.Et.r: ,, ron fir„ Vim_ ; ru„i 1AliVBrnt n,,�z ,,,,,l,aµ hDrllti m: rZnrt AaM It is critical to enter the market with an
<br />aggressive scale after a thoughtful and comprehensive premarketing effort. This approach has produced
<br />better than expected results in every POB transaction our team has lead. Additionally, we took this
<br />approach on the City's last two transactions to deliver superior results. Our willingness to underwrite was
<br />also evident in the City's Gas Tax Refunding Bonds, Series 2019 where our team underwrote unsold bonds
<br />without any changes to the scale. We consistently put capital at risk to support the most aggressive pricing
<br />and this approach delivers exceptional results for our issuer clients.
<br />J.;. We commit to provide full disclosure and a transparent
<br />process. We will provide (i) access to Ipreo Gameday on the pricing day to ensure access to real time
<br />investor order information, and (ii) ongoing market feedback through the structuring process and pricing.
<br />POB Marketing Challenges. The most important marketing challenges for POBs in the current market are
<br />1) identifying active POB buyers and 2) articulating the credit strengths of the specific issuer to
<br />investors. Leveraging our leadership in the POB space, we have identified the top POB investors above
<br />and based on our history with the City, we can articulate the Santa Aria story better than any
<br />competitor. Our team is uniquely qualified to address the most critical challenges and lead the City's
<br />upcoming POBs.
<br />City Council
<br />14 23 — 252
<br />5/18/2021
<br />
|