Chicago named William Blair & Co. the book-running senior manager on a new-money and refunding general obligation bond sale of up to $1.1 billion.
The city’s Finance Department introduced an ordinance last week to the City Council seeking approval to sell up to $1.1 billion, although it does not expect to tap the full authorization. Officials hope to issue the bonds later this year but continued market turmoil could delay the sale.
Mesirow Financial Inc. and George K. Baum & Co. are co-senior managers. The co-managers include Rice Financial Products Co., Siebert, Brandford, Shank & Co., Estrada Hinojosa & Co., and Samuel R. Ramirez & Co. Katten Muchin Rosenman LLP and Charity & Associates PC are bond counsel and Freeborn & Peters and are underwriters counsel.
Finance Committee chairman Edward Burke last week introduced a measure that would ban from city deals any broker-dealers who participate in the federal bailout plan but do not limit their executive’s financial compensation package to $400,000.
If approved, such a rule would likely exclude most of the remaining Wall Street firms from Chicago bond deals. City finance chief Paul Volpe has not commented on the impact such a restriction would have on Chicago’s borrowing practices, especially on larger deals where the city typically uses firms with a strong capital base.
All of the underwriting firms chosen for the upcoming sale are either Chicago-based, regional, or minority-owned firms.