New York City reached outside its top underwriting tier to find two firms to lead manage an $800 million general obligation refunding this month, the city announced Tuesday.
Barclays Capital and Loop Capital Markets LLC were chosen to lead manage the sale as co-book-runners. The firms will split those responsibilities. Barclays will manage the order book and lead the marketing effort. Loop’s primary responsibility will be to structure the deal.
The city last year selected the two firms to be senior co-managers on GO deals in a request for proposals process. Loop was designated as one of three firms that could earn the right to lead manage a deal.
New York “has decided to acknowledge the strength of the refunding proposals submitted to the city by these firms,” the city said in a press release.
Barclays was the fourth most active lead manager in New York State in the first half of 2010, serving in that role on nine deals totaling $1.64 billion, according to Thomson Reuters. Loop ranked 15th, lead managing three deals totaling $295.7 million during that time.
The city chose Citi, Morgan Stanley, Jefferies & Co., JPMorgan, and Bank of America Merrill Lynch as co-senior managers.
Office of Management and Budget spokesman Raymond Orlando said that the proposals from Barclays and Loop offered the best savings to the city. He did not elaborate.
“Comptroller [John] Liu is very pleased with the open competitive process the city used to select the best proposals and looks forward to a successful sale,” said Liu spokeswoman Sharon Lee, who also did not comment on the selection process.
Other firms in the city’s underwriting syndicate will serve as co-managers.
The city plans to price the deal the last week of July and will likely include a retail order period.
Sidley Austin LLP is bond counsel. A.C. Advisory Inc. and Public Resources Advisory Group are financial advisers.
The city has $62.65 billion of tax-supported debt outstanding.