DEPARTMENT: Finance
DEPARTMENT HEAD: Troy Elliott
COUNCIL DISTRICTS IMPACTED: City-Wide
SUBJECT:
Approving Financial Underwriter Syndicates
SUMMARY:
This Ordinance authorizes and approves Financial Underwriter Syndicates selected from the City's Financial Underwriting Pool for financings of: City of San Antonio Public Facility Corporation Refunding Lease Revenue Bonds, Taxable Series 2020, City of San Antonio, Texas General Improvement Refunding Bonds, Tax Exempt Series 2020, and City of San Antonio, Texas General Improvement Refunding Bonds, Taxable Series 2020.
BACKGROUND INFORMATION:
In June 2017, the City established a Financial Underwriting Pool ("Pool") comprised of eighteen (18) firms to be utilized for the selection of underwriting syndicates for financial transactions effectuated by the City over the term of the Pool. In October 2019, the City expanded the Pool to twenty (20) by including two qualified local firms that were selected through a Request for Proposal process that targeted local participation.
Once a potential bond financing transaction is identified, an underwriting syndicate is selected from firms within the Pool. The roles of each firm in the syndicate are determined based on performance in addition to other considerations including capital position and sales and distribution capabilities. Firms included in the Pool can potentially serve in the capacity of Senior, Co-Senior, or Co-Managing Underwriter.
Based on current interest rates and market conditions, the City is aware of two potential refunding bond transactions that could result in significant interest cost savings. These include: 1) the refunding of the City of San Antonio Public Facility Corporation Lease Revenue Bonds, which were issued in 2012 to finance the most recent Convention Center expansion; and 2) various issuances of outstanding general obligation bonds and certificates of obligation. Based on the feasibility of these refunding transactions,...
Click here for full text