CHICAGO - Broker-dealers interested in serving as a senior or co-manager on Wisconsin's negotiated bond sales or as dealers on its commercial paper issues over the next two years have until July 15 to submit their qualifications to the state.
Issuance planned during the two-year period through June 30, 2011, "may involve development of new borrowing programs" or "future types of variable-rate instruments." The deadline for electronic submissions is noon Central Time on July 15.
In addition to routinely sought information like an underwriter's experience in recent years working on issuance from the state, its agencies, or local governments, Wisconsin capital finance director Frank Hoadley is seeking ideas and information driven by more recent market developments.
Underwriters are asked to describe their efforts in working with state and local governments using the taxable Build America Bond program and to suggest any opportunities the federal stimulus or other disaster or economic recovery-type legislation may offer the state.
Wisconsin also is seeking information from underwriters on the benefits and costs and how the state could issue a planned restructuring as tax-credit bonds with the tax credit benefiting the bondholder and not the state.
The documents also note the significant role retail buyers played in getting deals sold during the market turmoil of late last year and early this year. Underwriters are asked to "discuss the current importance of 'retail' with the primary offering of state of Wisconsin obligations" and marketing plans the state should consider to best attract retail buyers.
Gov. Jim Doyle on Monday signed a two-year, $61.8 billion state budget that authorizes $3.58 billion of bonding in the coming years and wipes out a $6.6 billion deficit through a mix of federal stimulus funds, spending cuts, tax and fee increases, and debt restructuring.
The debt authorization permits $2.9 billion of general obligation borrowing and another $680 million of revenue-supported bonds. The figure includes $285 million of borrowing to restructure existing debt, pushing off some near-term debt payments.
The state's GO ratings are AA from Standard & Poor's, AA-minus from Fitch Ratings, and Aa3 with a negative outlook from Moody's Investors Service.
