Debt Issuance From A to Z - AAC #821 - (3/6/2014)

Mar 06, 2014 08:00am -
Mar 06, 2014 04:30pm
(GMT-6)

Event Description

This is a full day seminar with nine different sessions devoted to the most important areas of Illinois School District debt issuance. The sessions will entail both a lecture and panel discussion format with the intention by presenters to provide ample opportunity for interactive discussion. The seminar will introduce basic issues during the first half and advanced issues in the second half. By the end of the seminar, participants will attain an understanding of the types of debt available, differences between a competitive and negotiated bond sale, bond rating criteria and how to prepare for a rating agency presentation, legal matters, common pitfalls during the issuance process, and  current market environment.

CPE Credit: 7 pts.
Designation Points: 6 pts.

Registration & Refreshments: 8:00am - 8:30am
Program: 8:30am - 4:30pm
Lunch: 12:00pm - 12:45pm

Basic or Refresher Class – First Half

8:30am – 9:10am                                                     

Overview:  Why School Districts Issue Debt, Types of Debt Available, Who Typically Buys Illinois School District Debt and Assessing Capital Needs

Thomas L. Chapman, Managing Director, Raymond James & Associates, Chicago, IL

Participants will learn about the types of debt that school districts can issue and for what purpose. They will also learn the general steps that need to be taken to gain legal authority to issue the various types of bonds. 

9:10am - 9:55am                                          

The Legal Framework:  Key Documents, Illinois Law and Tax Rules  

Anjali Vij, Associate, Chapman and Cutler LLP, Chicago, IL

Participants will learn the key legal requirements for issuing debt, including provisions of the School Code, Local Government Debt Reform Act, Bond Issue Notification Act and Open Meetings Act. An overview of the federal tax laws will also be included.    

9:55am - 10:10am:  Break

10:10am - 11:10 am                                                      

The Competitive and Negotiated Bond Sale Process, Direct Purchase Bonds, and the Roles of the Financial Advisor (now Municipal Advisor) and Underwriter. 

Todd S. Krzyskowski, Managing Director; Mesirow Financial, Inc., Chicago, IL     

Steve H. Larson, Sr. Vice President; Ehlers & Associates, Inc., Lisle, IL    
Laura Mishlove, Vice President, Commercial Banking, Chase Bank, Chicago, IL

The roles of underwriters and financial advisors as well as the use of direct placement securities as alternative financing continue to evolve as school districts navigate unprecedented market conditions and political challenges.  Gain insight into the new realities of these traditional roles surrounding the sale of your School District’s bonds.  A discussion of the Dodd-Frank Act and other current regulatory rules will be provided.

Participants will learn about the various methods of sale and the roles of the financial advisor and underwriter.  Examples will be presented for each method of sale.

Goals of Session: 

•       Provide guidance for issuing bonds and other debt options.                                     

•       Understand roles of professionals and new regulations governing them.
•       Help evaluate various methods of sale.
•       Better understand bond terms.
•       Better understand costs of issuance.

11: 10-11:45 am
                                               
Preparing for your rating agency meeting

        Helen Samuelson, Director; Standard & Poor's, Chicago, IL
                     
Participants will learn:

•       What is the purpose of the credit rating and how they are obtained?
•       The basics of the rating process.
•       What criteria rating agencies use to assign ratings?
•       Preparing for your meeting with the rating agency.
•       What questions rating agency analysts may ask?
•       Post bond issuance--Surveillance of Ratings, etc.

11: 45am -12:00pm    

Common basic errors made during the bond issuance process and other questions and answers from audience.     
                   
The goal is to heighten the issuers’ awareness during bond issuance process and not necessarily rely entirely on the professionals you hire. Participants are encouraged to ask questions either orally or provide in writing before or during the first half of the session. 

12:00pm - 12:45pm:  Lunch

Advanced Class – Second Half

12:45pm -1:15pm                                                                    

Variables that impact the bond market 

Tammie Beckwith Schallmo, Managing Director, PMA Financial Network, Naperville, IL  Thomas L. Chapman, Managing Director, Raymond James & Associates, Chicago, IL

Participants will learn about the numerous factors that impact the municipal bond market.  From the amount of municipal bond supply to activities of the Federal Reserve and the state of local, state and national economies and more, this session will explain what factors can impact a school district’s cost of borrowing.

1:15 - 1:55pm

 

SEC enforcement and the importance of disclosure                                 

Anjali Vij, Associate, Chapman and Cutler LLP, Chicago, IL

Anne E. Noble, Senior Vice President, Stifel Nicholas & Company

In 2013, the Securities and Exchange Commission closed a record number of enforcement actions related to faulty disclosure in municipal bond issues.  In this session, participants will learn the disclosure rules under the federal securities laws which apply during the sale of your bonds and after the bonds are issued.  Participants will also learn how the SEC has enforced these laws in the context of precedent-setting cases from the past few years.

 

1:55 -2:30pm

Current State of Illinois School District Bonds from a Buyer's Perspective

Jason Baule, Senior Manager, Chicago Corporate Treasury, BMO Harris, Chicago
David C. Johnson, Managing Director, Mesirow Financial

This is a panel discussion from buyers of Illinois School District Paper (bank qualified and non- bank qualified). Participants will be able to learn and understand what these buyers consider important in purchasing Illinois School District Bonds.  How these buyers view such items as underlying ratings, bond insurance, school district management, and other matters will also be discussed. 
  

2:30pm – 2:45pm:  Break

2:45pm - 3:30pm                                                                                          

Refinancing in today’s economy - How & Why?    

In today's market we see historically low interest rates. We will discuss the mechanics of bond refinancing; current vs advance refundings, impact of negative arbitrage and strategies for minimizing it, as well as using refundings to help manage tax rates. 

Anne E. Noble, Senior Vice President, Stifel Nicholas & Company

Elizabeth M. Hennessy, Principal; William Blair & Company, LLC, Chicago, IL

Items discussed will include when to use refinancing, managing tax rates/declining tax rates, use of alternative investments in an escrow.

3: 30pm – 4:30pm       

a)         Federal & State Legislative Update Relating to School District Finance      

John Izzo, Partner/Principal, Sraga Hauser LLC, Flossmoor, IL

The most current federal and state legislative initiatives that impact school districts’ finances and their borrowings will be discussed.

b)         How New Rules Governing Municipal Advisors Impact You                        

Anjali Vij, Associate, Chapman and Cutler LLP, Chicago, IL

NOTE:  Participants will be REQUIRED to draft a one page answer to the following questions upon completing the course and it must be turned in to receive Administrators’ Academy Credit.

1.      Explain the difference between a competitive vs. a negotiated bond sale.
2.      Explain the importance of credit rating process and the steps a district needs to take to prepare for a successful credit rating presentation.
3.      Explain the importance of bond counsel in the debt issuance process.
4.      Explain what potential buyers look for when investing or purchasing bonds and how the markets may affect your issuance.
5.      Explain some common errors experienced by school districts when issuing debt and how you can avoid them by applying what you learned in this course.
6.     Describe the key responsibilities of school administrators with respect to disclosure requirements for publicly re-offered bonds.

Please be aware that you will be asked to sign in and out to track seminar attendance. This change is due to increasing state certification requirements.

Please contact Sandy Barry for any special dietary needs by Friday, February 27 at sbarry@iasbo.org or (815) 753-9350.

Click the "Register for this Event" button below and log in to see which fee pertains to you!



Event Type:Seminars
Category:Administrators' Academy Credit
Early registration ends on Jan 13, 2014.
Regular registration starts on Jan 14, 2014 and ends on Mar 05, 2014.
Late registration starts on Mar 06, 2014.
(GMT-06:00) Central Time (US & Canada)

 

Downloadable Documents
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File Type Document Name
PDF Debt Issuance Fax Form