HomeMy WebLinkAboutMINUTES - 10061992 - 1.86 - Contra
TO: BOARD OF SUPERVISORS Costa
g'•. �.�
FROM: Harvey E. Bragdonca TA :._n. J° County
Director of Community Development
DATE: October 6, 1992
SUBJECT: Multi-Family Refunding Bonds
SPECIFIC REQUEST(S) OR RECOMMENDATIONS (S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
Designate Paine Webber as Senior Managing Underwriter and Artemis
Capital as Co-Managing Underwriter .and Orrick Herrington & Sutcliffe
as bond counsel for the refunding of the County's 1985-E and 1985-H
Multi-Family Mortgage Revenue Bonds.
FISCAL IMPACT
None. The County will be reimbursed for its costs of issuance.
BACKGROUND/REASONS FOR RECOMMENDATIONS
In January, 1990 the Board of Supervisors adopted revised policies and
procedures for the award of financial advisors, investment
bankers/underwriters, and bond counsel of County capital financings.
Pursuant to those policies, the County has established a list of
qualified firms for multi-family bond transactions.
CONTINUED ON ATTACHMENT: YES SIGNATURE: 7 :
RECOMMENDATION OF COUNTY ADMINISTRATOR RECO DATION OF OARD CO TTEE
APPROVE OTHER
i
SIGNATURE(S) :
ACTION OF BOARD ON , 02 APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A
UNANIMOUS (ABSENT ) TRUE AND CORRECT COPY OF AN
AYES: NOES: ACTION TAKEN AND ENTERED ON THE
ABSENT: ABSTAIN: MINUTES OF THE BOARD OF
SUPERVISORS ON THE DATE SHOWN.
Jim Kennedy
646-4076
cc: Community Development
ATTESTED
PHIL BATCHELOR, CLERK OF
THE BOARD OF SUPERVISORS
AND COUNTY ADMINISTRATOR
Swa5imtbona9.bog BY , DEPUTY
In 1985 the County issued multi-family bonds to finance the
Rivershore and Lakeshore Apartments in West Pittsburg and Antioch
respectively (Issues 1985-E and 1985-H) . The bonds were secured by
a First Nationwide Bank (FNB) Letter of Credit. The project owners
and FNB desire to refund the bonds in order to realize interest
rate savings and to provide for an altered credit/security
structure. To complete the refunding will require the retention of
an underwriter and bond counsel.
Pursuant to the procedures for multi-family bonds, the project
owners and FNB have requested that Paine Webber, Inc. underwrite
the bonds. Paine Webber has been retained on similar transactions
of FNB and is intimate with the proposed structure. Further, Paine
Webber will be engaged by FNB as the Remarketing Agent for the
bonds. The bonds will be issued as variable rate bonds. Artemis
Capital, a WBE firm, has particular strengths in the selling of
such securities and is being recommended as a co-manager. Orrick
Herrington & Sutcliffe is being recommended as bond counsel. Of
the firms with experience with this structure, Orrick was the least
costly. Further, Orrick acted as bond counsel on the original
transaction, and is therefore more intimate with details that will
impact the refunding process.