Montana issuers will benefit from the ability to determine the method of bond sale that best fits their needs. Passage of this Bill would give local government issuers the same authority provided to most issuers across the county to choose the method of bond sale based on circumstances unique to the issuer, the type of bonds and today’s changing market place.
Negotiated bond offerings allow the issuer to select a purchaser (an underwriter, a banking institution, or a government agency such as Rural Development or Board of Investments) and negotiate the terms of the issue. If the issue is underwritten, the underwriter, together with issuer input, is able to premarket the bonds to investors before the sale in an effort to minimize rates and maximize favorable terms for the issuer. The enhanced flexibility, early marketing (if applicable), and structuring allowed by a negotiated sale are beneficial in many circumstances – some of which include: Small bond issues that may have few bidders or failed bids. Bonds or issuers with lower ratings or no rating. Bond issues that require innovative structure or security. New issuers and small issuers. Unusually large bond issues. Issuers that would benefit or prefer to sell bonds to local individual investors and banks. Times of market volatility and uncertainty as experienced most recently in 2008, 2009, and 2010. Bonds with features that are new to the markets such as tax credit bonds.
In many instances Missoula County's only bidder is DA Davidson such as the Larchmont ARRA deal. It would ideal to be able to execute a negotiated deal with them in order tho pre-market the bonds thereby getting better prices.
Missoula County supports House Bill 588 - Revise local government water and sewer district laws, before the House Transportation Committee this afternoon. Montana issuers will benefit from the ability to determine the method of bond sale that best fits their needs. HB 588 would give local government issuers the same authority provided to most issuers across the county and the ability to choose the method of bond sale based on circumstances unique to the issuer, the type of bonds and todays changing market place. Please support HB 588. Respectfully, Dale Bickell on behalf of the Board of County Commissioners
Greg Robertson wrote:
ReplyDeleteI don't think this one affects us.
Andrew Czorny wrote:
ReplyDeleteMontana issuers will benefit from the ability to determine the method of bond sale that best fits their needs. Passage of this Bill would give local government issuers the same authority provided to most issuers across the county to choose the method of bond sale based on circumstances unique to the issuer, the type of bonds and today’s changing market place.
Negotiated bond offerings allow the issuer to select a purchaser (an underwriter, a banking institution, or a government agency such as Rural Development or Board of Investments) and negotiate the terms of the issue. If the issue is underwritten, the underwriter, together with issuer input, is able to premarket the bonds to investors before the sale in an effort to minimize rates and maximize favorable terms for the issuer. The enhanced flexibility, early marketing (if applicable), and structuring allowed by a negotiated sale are beneficial in many circumstances – some of which include:
Small bond issues that may have few bidders or failed bids.
Bonds or issuers with lower ratings or no rating.
Bond issues that require innovative structure or security.
New issuers and small issuers.
Unusually large bond issues.
Issuers that would benefit or prefer to sell bonds to local individual investors and banks.
Times of market volatility and uncertainty as experienced most recently in 2008, 2009, and 2010.
Bonds with features that are new to the markets such as tax credit bonds.
In many instances Missoula County's only bidder is DA Davidson such as the Larchmont ARRA deal. It would ideal to be able to execute a negotiated deal with them in order tho pre-market the bonds thereby getting better prices.
Missoula County strongly supports this bill.
This comment has been removed by the author.
ReplyDeleteMessage sent to Missoula Reps:
ReplyDeleteMissoula County supports House Bill 588 - Revise local government water and sewer district laws, before the House Transportation Committee this afternoon. Montana issuers will benefit from the ability to determine the method of bond sale that best fits their needs. HB 588 would give local government issuers the same authority provided to most issuers across the county and the ability to choose the method of bond sale based on circumstances unique to the issuer, the type of bonds and todays changing market place. Please support HB 588.
Respectfully,
Dale Bickell on behalf of the Board of County Commissioners