City of San Antonio - File #: 17-2361

• File #: 17-2361
• Type: Miscellaneous Item
• In control: City Council A Session
• On agenda: 3/30/2017
• Posting Language: An Ordinance consenting to the assignment by Coastal Securities, Inc. of all of its interest in the City of San Antonio Financial Advisor Services Contract to FTN Financial, a division of First Tennessee Bank National Association, in connection with a merger and acquisition transaction between those parties. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer, Finance]

Date	Ver.	Action By	Action	Result
3/30/2017	1	City Council A Session

DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott


COUNCIL DISTRICTS IMPACTED: City-Wide


SUBJECT:

Assignment of Financial Advisor Services Contract


SUMMARY:

This Ordinance consents to the assignment by Coastal Securities, Inc. of its interest in the City of San Antonio Financial Advisor Services Contract to FTN Financial, a division of First Tennessee Bank National Association.


BACKGROUND INFORMATION:

The City utilizes Financial Advisor Services to assist in the management of its debt program and the design and issuance of bonds, certificates, tax notes, and other financial instruments. Financial Advisor Services include, but are not limited to, quantitative analysis, evaluation and presentation of financing options, provision of timely credit market information, and preparation of offering documents, advice and assistance with the issuance, sale and delivery of debt instruments, attending meetings, and the provision of ongoing services after the successful delivery of a debt issuance.

On March 31, 2016, City Council authorized the execution of contracts with Coastal Securities, Inc. and FirstSouthwest, a Division of Hilltop Securities, Inc. to provide Co-Financial Advisor Services in connection with various of the City's financings for a period to commence April 1, 2016 and terminate March 31, 2019, with an option to extend the contracts for one additional two-year period under the same terms and conditions.
On March 14, 2017, the City was notified that Coastal Securities, Inc. was entering into an Asset Purchasing Agreement with FTN Financial, a division of First Tennessee Bank National Association, whereby substantially all the assets of Coastal Securities, Inc. will be purchased by FTN Financial, a division of First Tennessee Bank National Association. The transaction is effective April 1, 2017.

First Tennessee Bank National Association (FTB) is a national bank subsidiary of First Horizon National Corporation. FTN Financial Capital Mark...