Connecticut’s Treasury Department is looking for investment banking firms to form a new pool of underwriters that will work on general obligation and revenue debt.
Officials anticipate using the pool for a three-year period. Banks will serve as senior managers, co-senior managers, co-managers and within syndicate groups to help execute Connecticut bond deals.
Selected firms may work on GO issuance, special-tax obligation bonds that help finance transportation infrastructure needs, state revolving fund debt for its clean water and drinking water programs, airport bonds, and debt for the University of Connecticut, according to the request for proposals.
Interested firms must include in their submissions the amount of Connecticut tax-exempt debt that they hold.
“Provide evidence of your secondary market support of state of Connecticut bonds or notes, including your firm’s average daily inventory of Connecticut tax-exempt securities during the past two years,” the RFP reads.
Banks will also detail any partnerships or arrangements with other financial companies in order to sell and distribute bonds. Firms looking to serve in a senior manager capacity must provide recommendations as to how the state can maximize its retail and institutional sales.
The RFP also requests a list of the most active institutional investors of Connecticut bonds and the largest buyers in the primary and secondary market since January 2009.
Connecticut may implement tolls on its roadways for the first time since the mid-1980s. To serve as senior manager on special-tax obligation debt, firms must analyze whether the state should direct any new toll revenue into the STO bonds’ senior lien or create a new lien with the toll revenue and include revenue estimates, bonding capacity, and credit factors.
Banks must submit electronic proposals by July 7 and their hardcopy versions by July 8.