Capital Project Planning
The most effective use of our services comes from an ongoing involvement, where we work with you to develop a long-term plan and assist in the coordination of its implementation. We assist our clients in the development of a financial plan to size, structure and market their bonds. The plan should provide alternatives and be flexible in order to accommodate changing circumstances.
We will meet with the appropriate officials to review the proposed financing, determine the amount and nature of the financing and establish an approximate time frame. If necessary, we will be available to make presentations to the public in an effort to further promote the proposed financing. We prepare the maturity schedules for bond issues which will be attractive to potential bidders as well as acceptable to the entity and to Bond Counsel. We will offer options, and perform sensitivity analyses so that the issuer may make a more informed decision regarding current as well as future budgetary impact.
Rating Agency Reviews
When a bond issue is brought to the market with an Official Statement, it will most likely be accompanied by a credit rating. In anticipation of a bond sale or if an issuer would like to obtain an indicative rating, we submit all necessary documents and information to the rating agencies. Munistat engages in approximately 75 rating agency reviews and surveillance calls per year. It is Munistat’s policy to participate in the conference call with the rating agency in order to present our views regarding the Issuer’s rating. If the situation warrants, we will arrange a personal meeting with the rating agency credit analysts to further solidify our position. Copies of such rating agency presentations are made available upon request.
Financing with Bonds, Notes and Leases
As soon as the method of borrowing has been determined, it is time to market the bonds to the investor community. An Official Statement is the offering document that is prepared on behalf of the issuer in connection with the sale of securities. Such document describes the terms and conditions of the sale, and sets forth all of the financial and operating information about the entity. Munistat assists our clients in the creation and presentation of all Official Statements so that the investor has all of the necessary information it needs in order to make an informed decision regarding the purchase of your bonds.
The process for the financing is as follows:
Submit a list of the documents and information necessary to prepare the Official Statement. We then prepare the Official Statement, relying on Bond Counsel for certain language relating to legal matters, in accordance with disclosure requirements, as set forth in Securities and Exchange Commission Rule 15c2-12. Distribute Official Statements and Notices of Sale to prospective underwriters and other members of the investment community through various information repositories and post the documents on our website. See “Bond and Note Sale Calendar”. The bid opening is held at our offices and we verify the calculation of the winning bid. We will then coordinate the preparation of the Final Official Statement and the details of the closing with the issuer, bond counsel, the underwriter, and other interested parties.
In accordance with SEC Rule 15c2-12 and the Undertaking to Provide Continuing Disclosure as executed by the issuer in connection with certain bonds, the issuer is required to file a Statement of Annual Financial and Operating Information with the Electronic Municipal Market Access System (EMMA) each year that the Bonds are outstanding. Failure to provide the Statement to the repositories within the time specified constitutes a “material event” under the SEC rule and is required to be disclosed to the market immediately; Such failure may have a negative effect on the market for and marketability of future bond and note issues of the issuer. As your Financial Advisor, we will maintain in our database the record of the issuer’s obligation to file this document as well as all of the information contained in the Official Statement and we are prepared to offer our services to assist you in this matter.