Item 23 - Pension Debt Refinancing Update and Underwriter Selection

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STIFEL Marketing Plan Stifel will employ a 3-point marketing plan for the City's POBs. Early Outreach to Anchor Investors. Beginning about one month before the POBs come to market, Stifel will begin to communicate with potential anchor investors. Stifel's California based salesforce will target domestic institutional accounts while working concurrently with Stifel Europe to communicate with international accounts. Based on their feedback we can begin tracking where they are buying and trading similar credits, giving us a better understanding of where they will price this credit. 2. Drone Video/Investor Presentation. Many underwriters have used 'flat' investor presentations to accompany the sale of POBs. We would prefer to show a more dynamic presentation of the community, describe the vision that Council and management have for the City and provide context of the City's strategic location within Orange County. As noted in our cover letter, along with our proposal, we provide a brief video that would be used to market the City's POBs. 3. Local Retail Marketing Plan. Newspaper ads in local publications (both print and online editions) will be used to publicize the bond sale to tsevsw.aoo---• Daily Pilot_ - _ MFEL �3 ;� 5 mple St fel PosxaN _ s:, :.mom 5 :.A ,AdP,oe,am�AOPd1 g ild residents. Stifel would place ads, at no cost to the City, in publications like the Los Angeles Times, the Orange County Register and The Daily Pilot. Recent examples of our local retail marketing campaign efforts are provided in the accompanying graphic. E. In what circumstances, if any, would you recommend a private placement of POBs rather than a public offering? What would be the pros and cons of such a strategy? For a transaction as large as the City's, we do not believe a private placement will produce a better result than a public bond sale. A private placement would be set as one blended interest rate (with more weight given to the final maturity of the POBs) whereas a public bond offering would enable the City to divide the issuance into smaller pieces by serializing the Bonds (years 1-15) and then splitting up the remainder of the issue with multiple term bonds. F. Describe a recent engagement your firm was involved in a debt issuance in which there were multiple underwriters engaged. We have had the pleasure of serving as lead manager of a multi -firm syndicate on several recent POBs, including the Orange POBs that priced last Thursday (3/3) and upcoming Huntington Beach POBs, which are scheduled to price next week. Our goal as lead manager is to foster a collaborative environment that leverages the strengths of each co- manager to secure the best possible outcome (lowest borrowing cost) for our issuer clients. As mentioned in our cover letter, at the request of the city, advisor and in coordination with our co -manager, we seamlessly expedited the pricing period from a 2 to 1-day process for the recent Orange POBs to lock -in aggressive interest rates amidst market volatility. The strategy paid off as, over the next two days, US Treasury yields increased up to 9 basis points throughout the yield curve. City of Santa Ana I Proposal to Provide Underwriting Services Page 14