THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE AVIATION DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
On June 11, 2013 (Item No. 55), the Board approved a library of underwriters to serve as senior and co-managers on County financings at the recommendation of the Chief Financial Officer and with approval by the Board. The approved library currently consists of Citigroup Global Markets, Inc.; Estrada Hinojosa & Co., Inc.; Jefferies LLC; JP Morgan Securities LLC; Bank of America Merrill Lynch; Morgan Stanley & Co. LLC; Raymond James & Associates, Inc.; RBC Capital Markets, LLC; Ramirez & Co., Inc.; and Siebert Brandford Shank & Co., L.L.C. Exhibit 1 to this agenda item is a matrix containing each firm's experience with the County on financings that have occurred since 2011.
In identifying underwriters for this transaction, staff along with the financial advisor assigned to this transaction (Frasca & Associates, LLC) reviewed responses to a series of questions related to general information about the firm, material changes and capital position, regulatory issues, underwriting experience with relevant bond transactions, marketing plan, description of the firm's approach to credit ratings, and recommended financing structure. Citigroup Global Markets, Inc. is being recommended as senior manager (bookrunner) along with Bank of America Merrill Lynch, Jefferies LLC, and Siebert Brandford Shank & Co. as co-managers due to the quality of the firms' responses and experiences in underwriting airport bonds, both nationally and in Florida. Additionally, based on the alternative minimum tax status of this offering, we believe the chosen firms will provide the needed focus on institutional buyers. See Exhibit 2 for supporting analysis provided by the financial advisor.
The size of this issuance is currently estimated at $340 million and will be used to fund terminal renovations at the Broward County Fort Lauderdale-Hollywood International Airport. Financing documents will be brought back to the Board for consideration before this transaction proceeds to market.
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