Laserfiche WebLink
Pension Debt Refinancing Update and Underwriter Selection <br />May 18, 2021 <br />Page 3 <br />refinancing for cities located in Orange County (e.g. Huntington Beach and Orange). <br />Ramirez was the City's underwriter for its two most recent debt issuances and is most <br />familiar with the City's credit profile, and has relevant experience with pension debt <br />refinancing. All three underwriters submitted well -researched, creative debt structures <br />and marketing proposals to the City, demonstrating their ability to serve the City's needs. <br />As an additional benefit, the proposed Syndicate of Underwriters have complementary <br />strengths. <br />The City will contract with its Underwriters via the Bond Purchase Agreement, which <br />outlines the terms and conditions of the potential debt issuance along with the proposed <br />underwriting fee of $1.75 per $1,000 bond. The Underwriting Syndicate has agreed to a <br />fee split as follows: <br />Fee Arranaement* <br />• BofA <br />47.50% <br />• Stifel <br />26.25% <br />• Ramirez <br />26.25% <br />Total <br />100.00% <br />*Note: Subject to change <br />based upon actual sales by each firm <br />Below are the proposed duties for each member of the Syndicate: <br />• BofA <br />o Numerical and Structuring Analysis <br />o Marketing Plan and Investor Outreach Coordination <br />o Communication between the Syndicate <br />o Review of relevant bond documents (i.e. official statement, etc.) <br />o Participate on Market Update and Pricing call with the Financing Team <br />• Stifel <br />o Rating Presentation <br />o Review of relevant bond documents (i.e. official statement, etc.) <br />o Participate on Market Update and Pricing call with the Financing Team <br />• Ramirez <br />o Investor Online Roadshow <br />o Review of relevant bond documents (i.e. official statement, etc.) <br />o Participate on Market Update and Pricing call with the Financing Team <br />Next Steps <br />Assuming the Court makes its determination within sixty (60) - ninety (90) days, the <br />preliminarily timeline for the Pension Debt refinancing follows. <br />1. Receive updated CalPERS data by July 2021. <br />2. Develop Bond documents such as the preliminary official statement and bond <br />purchase agreement for City Council Consideration, potentially by September <br />2021. <br />