HomeMy WebLinkAboutItem #69 - Discussion ItemTO
FROM
CITY OF MIAMI, FLORIDA
INTER -OFFICE MEMORANDUM
Commissioner Arthur Teele and
Mem s he City Commission
im ez,
City Manager
71STRICT 5 F
COMMISSIONER TEELE
DATE: December 12, 2002
SUBJECT: Report on Bond Issues
and Underwriters
REFERENCES:
ENCLOSURES:
FILE:
Approximately 15 months ago the City Commission approved the selection of a team of
six underwriters to sell bonds for the City of Miami. The Administration established a
rotation process for senior manager with each of the team members to sell twelve
percent (12%) of the bonds in each transaction and the senior manager to receive forty
percent (40%) of the bond issue that they senior manage.
Since the City reentered the bond market in March of this year, the City has completed
four bond issues and is working on the fifth. These issues and senior managers were:
$ 32,510,000 General Obligation Refunding Bonds, Series 2002A — J. P. Morgan
$ 41,065,000 Special Obligation Refunding Bonds, Series 2002A & B — Prudential
$153,186,406 General Obligation Bonds, Series 2002A — Morgan Stanley
$ 29,065,000 Special Obligation Refunding Bonds, Series 2002C — Smith Barney
$ 14,000,000 TIF Financing & Refunding Bonds, Jackson Securities, In Process
Of the six original members of the underwriting team, all have been or currently are
senior ,managers of an issue, except Lehman Brothers who is in line for the senior
manager position of the next transaction.
The firm of Salomon Smith Barney has resigned from the team leaving five members.
This will cause each member of the team to increase its percentage of each transaction
from the twelve percent (12%) above to fifteen percent (15%). The senior manager will
continue to be allocated forty percent (40%) of the transaction that they manage.
CAG:RJN:bd