THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT AND THE PORT EVERGLADES DEPARTMENT RECOMMEND APPROVAL OF THE ABOVE MOTION.
On September 25, 2018 (Item No. 54), 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 consists of Citigroup Global Markets Inc.; Estrada Hinojosa & Company, Inc.; Goldman Sachs & Co. LLC; Jefferies LLC; J.P. Morgan Securities LLC; Merrill Lynch, Pierce, Fenner & Smith Incorporated d/b/a Bank of America Merrill Lynch; Morgan Stanley & Co. LLC; Raymond James & Associates d/b/a Raymond James; RBC Capital Markets, LLC; and Siebert Cisneros Shank & Co. L.L.C. As this is the first time this library is utilized, Exhibit 1 to this agenda provides information on previous work performed by the underwriters in the prior library. The prior library included nine of the ten underwriters in the current library.
In identifying underwriters for this transaction, staff along with the financial advisor assigned to this transaction (Hilltop Securities Inc.) reviewed responses to a series of questions related to general information about the firm, structuring recommendations, underwriting experience with relevant bond transactions, marketing plan, and description of the firm's approach to credit ratings. RBC Capital Markets, LLC is being recommended as senior manager (bookrunner) along with Bank of America Merrill Lynch, Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, and Siebert Cisneros Shank & Co. L.L.C as co-managers due to the quality of the firms' responses and experiences in underwriting port 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 $350 million-$450 million and will be used to fund projects at Broward County Port Everglades and to refund all, or a portion of, the Port Facilities Revenue Bonds Series 2009A. Financing documents will be brought back to the Board for consideration before this transaction proceeds to market. |