Amid continuing market turmoil, Roosevelt & Cross Inc. was the winning bidder on most of the competitively priced bonds sold in New York last week.
The firm continues to bid on deals and underwrite debt after failing to price a deal for the Erie County Fiscal Stability Authority a week and a half ago. In the New York competitive sector, it was the lead underwriter last week on five deals totaling $27.5 million out of eight deals that totaled $28.36 million, according to Thomson Reuters data.
"There's been absolutely no change in our attitude toward the New York market or our ability to function in it, we're in there every day," said Roosevelt & Cross senior vice president and manager Herman Charbonneau. "We've bid on every bond issue in New York state ... in the last 20 years and we continue to do that."
The firm has "more than $30 million in capital and with adequate bank financing for its diversified inventory," he said. "We're not really leveraged at all."
Charbonneau declined to comment on the Erie deal. On Sept. 24 and 25, Roosevelt & Cross tried to market $84.7 million of bond anticipation notes and $75 million of revenue anticipation notes for the ECFSA, but was unable to close the deal and unable to follow through on a commitment take the debt itself after it couldn't get a loan. The Rans were privately placed last week with Bank of America NA. Erie County officials met yesterday to discuss what to do about the Ban deal but the issue is still under discussion.
Nationwide, 65 deals totaling $1.47 billion sold last week, compared to $8.39 billion in the first week of October, 2007, according to Thomson Reuters.
The largest deal on which the firm was lead underwriter last week was $18.5 million negotiated bond anticipation note deal for city of Groton, Conn., according to Thomson. The largest bond sale on which they were lead underwriter was a $12.3 million competitive deal for Horseheads Central School District. They beat out a single bidder, Robert A. Baird & Co., with a net interest cost bid of 4.9585%. Baird had the cover bid with an NIC of 5.0139% on the debt, which has maturities from 2009 out to 2023 and is insured by Assured Guaranty, Inc.
The firm also beat out Morgan Keegan & Co. and Bernardi Securities Inc. on an $8.5 million deal for the North East Joint Fire District with an NIC of 5.0298% compared to the respective cover bids of 5.0656% and 5.4262%. The bonds have maturities from 2009 out to 2037 and are insured by Financial Security Assurance Inc.
Roosevelt & Cross also won the bid on $3.9 million of bonds for Amsterdam, beating out Bernardi Securities with a NIC of 4.4714% compared to 4.786%. The eight-year bonds are insured by FSA.
"Roosevelt & Cross serves a vital role in the New York market," said Jeffrey Smith, president and CEO of Municipal Solutions Inc., the financial adviser on the Amsterdam deal. "They are always there for bids, especially for our smaller rural upstate communities ... No deal is too small for them."
Smith said he had no qualms about working with the firm after their troubles with the Erie deal.
Roosevelt & Cross also won bids on $1.7 million of bonds for Irvington Union Free School District and $1.2 million of bonds for Pocantico Hills Central School District.
