We offer a comprehensive range of services on competitive bond sale transactions, from planning the schedule of sale, market testing the terms and conditions incorporated into the notice of sale, verifying bids, resizing bonds and following up through closing.
We offer the following key transaction-related services for competitive bond sales:
- Coordinating Time Schedule – Assign finance team responsibilities, scheduling of meetings/bond sale and other key events.
- Reviewing Bond Covenants (Revenue Bonds) – Review of business and financial covenants, additional bonds tests, required funds and cash flow timing.
- Evaluating Continuing Disclosure – Assist due diligence review with Issuer/Bond Counsel that continuing disclosure undertaking has been met.
- Monitoring Market Conditions – Coordinate with Davenport’s Fixed Income Department/Underwriting Desk to monitor new issue supply, interest rate volatility and investor activity and preferences.
- Competitive Sale Mechanics – Schedule time and date of sale, market test bidding parameters to include couponing, serial and/or term bond structures and call terms.
- Analyzing Bids/Pricing – Analyze/verify competitive bids and verify pricing calculations. Resize bonds as necessary and coordinate escrows for refinancing transactions.
- Post-Sale Analysis – Provide post-sale summary of bids and final transaction statistics.
- Closing – Prepare analysis of settlement costs and review/facilitate documents to close transaction. Provide required analysis for bond counsel.
- Investing Bond Proceeds – As applicable provide analysis of potential investment opportunities.
NEGOTIATED BOND SALES TRANSACTIONS
In certain circumstances, a negotiated bond sale may be an effective financing approach for first-time revenue-based credits and unconventional or complex financial structures.
We also provide the following key services related to achieving the optimal pricing in negotiated bond sale transactions:
- Syndicate Formation and Management – Help select the right group of underwriters and establish syndicate rules that promote maximum participation by firms on the underwriting team.
- Pre-Pricing Analysis – Work closely with our Fixed Income Department to conduct market research and determine the key factors affecting the sale of securities.
- Pricing Negotiations – Use our pre-pricing analysis work with our Fixed Income Department and Underwriting Desk to help establish the appropriate benchmark for underwriters in pricing bonds.
DIRECT BANK LOAN TRANSACTIONS
Another viable option for financing projects is a direct bank loan. Where this transaction may best benefit clients, we help ensure that the process is implemented in a way that maximizes competition, while minimizing interest and upfront costs.