responsibilities of debt issuers

Responsibilities of Debt Issuers

CDIAC Debt Basics – February 1, 2011Marla Bleavins – Debt & Treasury Manager Los Angeles

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Overview

The Planning Process

Managing the Financing Team

Understanding Your Transaction

Investor Outreach

Rating Agency Process

Post Issuance Matters

The Planning Process

Establish a debt policy

Identify capital needs

Select financing team

Set targets and structure for debt issuance

Determine method of sale

Educate your decision making body about the transaction

Managing the Financing Team

Issuer as quarterback

Select team early

Clarify roles and expectations from the start

Maintain a strong presence throughout the transaction

Strive for balance of opinions

Be mindful of biases and turf wars

Understanding the Transaction

Know your deal

Know what your organization’s obligations are going forward

Understand the documents

Understand the numbers and how they impact your organization

Be wary of trends

Don’t be afraid to push back on the experts

Investor Relations

Most dramatic change since 2008

Be proactive

Have an internet presence – Investor Relations Web Site

Work with disclosure counsel

Netroadshow

One-on-one meetings with investors

Rating Agency Process

Be proactive

Have a strong narrative, not just a data dump

Involve your upper management – prepare them

Anticipate questions and organize key data in easily accessible charts

Make the analysts’ job easy

Post Issuance Matters

Debt service payments

Annual disclosure filings

Compliance with bond covenants

Update rating agencies and investors

Tracking arbitrage rebate liabilities

Monitor refunding opportunities

Vendor management

Technological Tools Tickler system and debt management software