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Retail lavesunent Executives: Over 2,UUU Institutional Fixed Intone Over 50 Sates & Tmding Professionals: National $roketage Offices: Over 700 Calilomia Retail Offices: 34 California Retail Executives: Over 200 Target Audience for the Agency's Bonds. As the Agency's sole /senior - managing underwriter, Stifel would target three distinct audiences of investors: These audiences tend to be interested in different types of couponing /dollar price structures. Specifically, individual investors beyond ten years tend to buy bonds with slight discount coupons (coupon lower than yield), which generates a dollar price below par. Institutions and larger investment advisors tend to require 5% coupons, which they believe perform better in a rising interest rate environment. These 5% coupons result in pricing of the bonds above par. Assuming the Bonds are structured with a 10 -year par 1.o call, incorporating some discount maturities will result in lower yields to maturity and present a lower true interest cost for the Agency. We think the best way to accomplish the result the Agency most wants is to incorporate in the Bonds' interest rate scale a variety of couponing structures along the yield curve and target those audiences in the maturities that most attract them. To elaborate, please consider the following. Retail Investors. Stifel's retail advantage is derived from the firm's network of over 220 California Private Client Group sales executives who manage more than 69,000 individual retail accounts, most of which are for high net -worth California residents. As noted in the adjacent graphic, these professionals are located in 34 offices throughout the State and have clients throughout California. slim calsomla offices m.a< ... ....... Dl L • lc,uA Ilun,A U(fi,< a N14.1 `nmac Vitiu< Stifel has cultivated a network of individual investors who understand redevelopment credits. Over 60 of these individuals currently own the Agency's 2003 and 2011 Bonds, which are domiciled in Stifel's system. These sophisticated individual investors have remained active in recent post - dissolution underwritings — for example, last month's $1.09 million Emeryville RDA sale of its "A +" credit garnered over $27 million in orders from individual retail investors and small money managers or family offices. We would expect the strongest retail interest in the maturities through about five years, and then at spots along the yield curve in later years. Separately Managed Accounts. In addition to the professional retail accounts referenced above, our institutional sales staff covers larger financial institutions that invest funds on behalf of high net worth accounts. 'Phis buyer class, represented by firms like BlaekRock, Columbia Asset Management and Franklin is capable of putting in orders for strings of maturities and create significant momentum in a pricing. These accounts generally have dedicated municipal analysts reviewing credits, often tatting an independent view On bonds relative to the rating agencies. Investment Advisors and Bond Funds. The next audience that we would target for the Agency's Bonds are institution-like investment advisors and top tier and second -tier bond funds. Institutional participation will serve to augment the orders of retail investors and provide anchor orders in the middle and longer maturities. Some of the targets that we have ue familiar names —like Nuveen for its separate managed accounts, Schwab, Prudential, Franklin CITY OF SANTA ANA 3 -140 Pate 3