THE FINANCE AND ADMINISTRATIVE SERVICES DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
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. Exhibit 1 to this agenda provides information on the proposed underwriter selection from the current library and Exhibit 2 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, the Financial and Administrative Services Department along with Public Resources Advisory Group (the financial advisor) 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 a description of the firm's approach to credit ratings. In Motion A, Morgan Stanley & Co. LLC is being recommended as senior-managing underwriter (bookrunner) and Jefferies LLC is being recommended as co-senior managing underwriter, along with Raymond James & Associates d/b/a Raymond James, RBC Capital Markets, LLC, and Siebert Cisneros Shank & Co. L.L.C as co-managing underwriters for the Convention Center Expansion Project due to the quality of the firms' responses and experience in underwriting tourist development tax/convention center bonds, both nationally and in Florida. In Motion B, Citigroup Global Markets Inc. is being recommended as senior-managing underwriter (bookrunner) and Bank of America Merrill Lynch is being recommended as co-senior managing underwriter, along with Estrada Hinojosa & Company, Inc., and J.P. Morgan Securities LLC as co-managing underwriters for the Convention Center Headquarters Hotel Project due to the quality of the firms' responses and experience in convention center hotel bonds, both nationally and in Florida. See Exhibit 3 for supporting analysis provided by the financial advisor.
In Motion A, the size of the issuance is currently estimated at $600 million and will be used to expand the Convention Center. In Motion B, the size of the issuance is currently estimated at $500 million and will be used to build a Convention Center Headquarters Hotel. Financing documents will be brought back to the Board for consideration before this transaction proceeds to market. |