January 2019

Siebert Cisneros Shank & Co., L.L.C.

2018

Member FINRA & SIPC

year in201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018201820182018

ReviewSCS excels as senior-managing underwriter in multiple sectors in 2018

Source for rankings data and par amount totals throughout document: Thomson Reuters/SDC (Note: Senior-manager rankings are for negotiated long-term municipal bonds; full credit to book-runner, equal if joint; and for the full year of 2018. Co-man-ager rankings are full credit to each co-manager.)

2018 was a year of continuing outstanding service and accomplishments for Siebert Cisneros Shank.

The firm’s Public Finance Department recorded an underwriting volume of $53.84 billion in negotiated municipal financings in 2018, ranking 2nd nation-ally as co-manager (with a 22.6% market share). Siebert Cisneros Shank senior managed offerings of $5.77 billion in par amount, ranking 13th nationally.

Notably, the firm ranked 4th nationally as senior-managing underwriter for airport issuance representing 7.9% of market share for this sector in 2018, including the following senior-managed transactions:

• McCarran International Airport, $95,545,000 Airport System Junior Subordinate Lien Revenue Notes, Series 2018A (June)

• Los Angeles International Airport $425,000,000 Subordinate Revenue Bonds, 2018 Series C (July)

• City of Houston Airport System $569,110,000 Subordinate Lien Revenue Refunding Bonds, Series 2018C & D (July)

• Wayne County Airport Authority $231,930,000 Airport Revenue Bonds 2018A & Series C & D, Refundings (October)

Additionally notable is the firm’s ranking of 5th nationally as a senior-managing underwriter of water and sewer offerings, senior-managed transactions which repre-sented a 6.4% market share and included the following (among others):

• New York City Municipal Water Finance Authority $458,920,000 Water and Sewer System Second General Resolution Revenue Bonds, Fiscal 2018 Series EE (April)

• City of Los Angeles $359,670,000 Wastewater System Subordinate Revenue Bonds, Series 2018-A (Green Bonds (October)

• New York State Environmental Facilities Corporation $258,340,000 State Clean & Drinking Water Revenue Bonds, Series 2018 B (November)

Ranking type 2018

MWBE 1 Airports 4Water & Sewer 5Transportation 7Green Bonds 7Surface Transportation 9Healthcare (General Acute) 11General Purpose 12All Issuance (Senior Manager) 13All Issuance (Co-manager) 2

Siebert Cisneros Shank’s 2018 National Negotiated Municipal

Senior Manager Rankings

In July 2018, it was announced that Gary Hall, Senior Man-aging Director, National Head of Investment Banking and equity partner at Siebert Cisneros Shank & Co., L.L.C., would become the Chair of the Board of Directors of the Municipal Securities Rulemaking Board (MSRB). Mr. Hall who has been a member of the governing board of the MSRB since 2015, has led its Finance Committee and is a member of the Steering Committee. Mr. Hall is the first African-American to chair the MSRB Board. He noted that his perspective on the municipal securities market has been uniquely shaped by his personal experiences.

Gary Hall becomes Chair of MSRB Board of Directors“Growing up in public housing, attending public schools and receiving public grants to fund my college and law school education, I am a huge beneficiary of the public sec-tor and public assistance,” Hall said. “As the self-regulatory organization that safeguards the $3.8 trillion industry that funds infrastructure projects for public housing, schools and universities, the MSRB plays a critical role in ensur-ing that this market continues to serve the public interest. Serving as the next MSRB Chair is so personally gratifying and a way for me to pay homage to the public sector that has served me so well.”Gary Hall, Senior Managing Director,

National Head of Investment Banking(continued on last page)

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AIRPORTSSenior-managed Transactions

Wayne County Airport Authority (MI)$231,930,000Airport Revenue Bonds 2018A & Refunding C (Non-AMT)2018B & Refunding D (AMT)(October)

City of Houston Airport System (TX)$569,110,000Subordinate Lien Revenue Refunding Bonds, Series 2018C (AMT) & 2018D (Non-AMT)(July)

Highlights of 2018

Siebert Cisneros Shank priced Wayne County Airport Authority’s offering on October 30, 2018.

Purpose. Proceeds from the Series 2018A and B Bonds were used to pay costs relat-ed to acquiring, constructing and install-ing the Series 2018 Projects. Proceeds from the 2018C and D Refunding Bonds were used to refund all or a portion of the Authority’s outstanding 2008A Bonds. Pro-ceeds of the Bonds were also used to fund various costs of issuance.

Credit. The Series 2018 Bonds are secured by a statutory lien on net revenues. They are rated A2/A/A (Moody’s/S&P/Fitch).

Market Conditions. Throughout October, volatility increased in both fixed income and equities due to trade and protection-ism concerns and the market’s perception of the Fed’s continuation of rate hikes. Redemptions and bid-lists remained elevated, but higher rates allowed for con-tinued tax-loss swapping and increased

customer buying. There was a soft tone in the market on the day of pricing, with MMD cuts across the entire curve. Some scheduled deals were either pulled out of the market, transaction sizes decreased or yields raised substantially during repricing.

Marketing. SCS developed a slides-only investor presentation which was viewed by 44 different investors, 14 of whom sub-mitted orders. Leading up to pricing, we worked closely with the financial advisors to structure the bonds across four sepa-rate AMT and Non-AMT series, meeting the Authority’s tax law requirements while satisfying investor appetite. SCS also evaluated the effectiveness of bond insur-ance and alternative couponing on an option-adjusted basis to broaden investor demand.

Houston Airport System’s Series 2018C and Series 2018D Bonds were priced on July 17th, 2018 by Siebert Cisneros Shank as senior manager.

The Bonds were used to current refund all outstanding Senior Lien Bonds with Sub-ordinate Lien Bonds, eliminate the Airport System’s outstanding auction rate securi-ties, and to increase the cash balance on the Subordinate Lien Reserve Fund.

SCS developed a slides-only investor pre-sentation which was viewed by 35 different investors, 22 of whom submitted orders.

Leading up to pricing, SCS worked with the financial advisors to evaluate the effectiveness of bond insurance, the use of alternative couponing on an option adjusted basis and the use of open mar-ket securities in the escrow. The City ulti-mately bid out the escrow and purchased open market securities which generated additional net NPV savings of $250,000.

While the issuance volume for the week of pricing was expected over $9.5 bil-lion, SCS launched the order period with aggressive pricing levels with the knowl-edge that municipal investors in Texas are flush with reinvestment proceeds in August

and eagerly looking for a place to reinvest their cash. SCS ultimately received $2.46 billion in priority orders from over 80 dif-ferent investors.

As a result of the syndicate’s strong pre-marketing effort and aggressive pric-ing strategy, the bonds were almost 4 times oversubscribed and spreads were reduced by as much as 7 basis points at reprice.

SCS achieved the tightest uninsured AMT and non-AMT spreads in HAS’s history, including spreads that were up to 19 bps tighter than their Series 2018A&B Bonds which priced four months earlier.

The Series 2018CD Bonds generated net present value savings of $90.3 million (13.8% of refunded bonds).

Structuring. SCS developed a compre-hensive excel-based new money and refunding transaction model utilizing the WhatsBest linear model to optimize the financing structure. This incorporated the Authority’s common debt service reserve fund calculations, multi-project layered capitalized interest requirement and weighted average maturity requirement between AMT and non-AMT projects, and allowed quick adjustments to changing market conditions.

Pricing Results. SCS garnered over $590 million in priority orders from 37 different institutional investors. As a result of the syndicate’s strong pre-marketing effort and aggressive pricing strategy, the bonds were 2.5x oversubscribed and spreads were reduced by as much as 7 bps at repricing.

Despite a weak market tone the day of pric-ing, we maintained the AMT to Non-AMT spread throughout the curve. The Series 2018 C&D Bonds generated net present value savings of over $11.7 million (12.6% of refunded bonds); and the spreads to MMD on the Series 2018 Bonds were tight-er by up to 15 bps for the non-AMT bonds and up to 10 bps for the AMT bonds, as compared to the Authority’s transaction priced in September 2017.

SCS achieves historically low uninsured AMT and non-AMT spreads for the Houston Airport System

The Series 2018 spreads to MMD were as much as 10 to 15 bps tighter than the Authority’s September 2017 transaction

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LAWA achieves a lower 25 – 30 year AMT spread than any previous airport financing as of the day of pricing

SCS leads successful sale for McCarran International Airport

Los Angeles International Airport (CA)$425,000,000 Subordinate Revenue Bonds2018 Series C (AMT)(July)

McCarran International Airport (NV)$95,545,000 Airport System Junior Subordinate Lien Revenue NotesSeries 2018A (Non-AMT)(June)

Ξ In 2018 Siebert Cisneros Shank ranked 4th nationally as a senior manager of negotiated airport revenue bonds. Ξ

Siebert Cisneros Shank served as senior manager for Department of Airports of the City of Los Angeles’ (LAWA) 2018 Series C bonds which priced on July 12th, 2018.

Proceeds of the Series 2018C Bonds were used to fund a portion of LAWA’s $10.7 billion CIP, including the North Terminal Improvement Program as well as Terminal 1 and Terminals 6/7/8 Improvement Proj-ects. The Series 2018C Bonds are secured by a pledge of Subordinate Pledged Rev-enues and rated A1/AA-/AA-.

SCS worked closely with Airport manage-ment and the municipal advisors to create

a slides-only investor presentation, which was viewed by over 30 investors; 14 of these investors submitted orders.

In the months leading up to pricing, SCS evaluated multiple call and alternative couponing structures for the Series 2018C Bonds; LAWA ultimately used a 9.5-year call structure and the 2020 maturity used a 5.75% coupon. SCS also provided LAWA and the financing team with detailed tar-geted investor information including cur-rent holders and airport holder cash flows as well as recent buyers of shorter calls.

The week leading up to pricing Treasur-ies had been trading in a tight range; on the day of pricing, the municipal market was slightly stronger on the front end of the yield curve while the long end was relatively unchanged. SCS recommended entering the market with the goal of attract-ing the greatest amount of interest to build

a robust book of orders. At the end of the order period, given remaining balances in the 2024 – 25 serial maturities, SCS com-mitted to underwriting approximately $13 million of the bonds to maintain the integ-rity of the scale.

As a result of the syndicate’s strong pre-marketing effort and pricing strategy, the bonds were up to 3 times subscribed in the 2019 – 38 serial maturities and 5 times oversubscribed in the 2044 term bond.

Given the $1.2 billion in orders from 44 different investors, the 2028 – 38 serial maturities were repriced 1 – 3 basis points tighter in spread and the 2044 term bond was repriced 4 basis points tighter in spread. This resulted in the lowest-ever 25 – 30 year AMT spread for an airport financing as of the day of pricing and the tightest subordinate lien spreads across the curve for LAWA.

On June 6, 2018, as book-running man-ager, SCS priced the Airport System Junior Subordinate Lien Revenue Notes, Series 2018A, for Clark County, Nevada’s Airport System. Proceeds of the Series 2018A Notes were used to pay the princi-pal of the Series 2014B Notes. The Series 2018A Notes are secured by a third lien on Net Revenues of the Airport System, sub-ordinate to outstanding Senior Bonds and Second Lien Subordinate Securities, and on a parity with other Third Lien Subordi-nate Securities.

SCS worked closely with Airport man-agement and the co-financial advisors to

craft the credit story for rating agencies to position the Airport for a rating upgrade from S&P on the senior lien bonds that were rated Aa2/AA- by Moody’s and S&P, respectively. The transaction was rated A1/A+/NR.

In the months leading up to pricing, SCS regularly evaluated multiple structuring alternatives for the Series 2018A Notes, including assessing pricing levels across 2-, 3-, 4-, and 5-year structures.

In order to garner significant investor attention, the POS was posted alongside a slides-only investor presentation 7 days before pricing; ultimately, investors from 24 firms viewed the investor presentation and 8 submitted orders.

In the week before pricing, MMD rallied on the front end of the yield curve, with rates declining by up to 8 basis points in the first five maturities; however, on the

day of pricing, there was a weaker tone in the Treasury market as the ECB signaled that it might end its bond buying program (QE) at the next policy meeting.

SCS recommended that the County enter the market with a 5% coupon 3-year matu-rity, spread 20 basis points over MMD as a strategy to build the book first.

As a result of the syndicate’s strong per-marketing effort and pricing strategy, the bonds were 5.3 times oversubscribed with orders from 29 investors after the order period. Given the high level of orders, the Series 2018A Notes were repriced 6 basis points lower (MMD + 14 basis points), to a final yield of 1.98%.

The spread on the Series 2018A bond was tighter by 1 basis point than the compa-rable maturity on the Clark County School District G.O. Bonds, rated A1/A+/NR, which were priced the day before.

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WATER & SEWERΞ Since the firm was founded, SCS

has served as a bond underwriter for more than 700 negotiated water and sewer transactions, exceeding $137 billion in par, of which 100 (over $18 billion in par) have been as a senior manager. The firm ranked 5th nationally as a senior-manager of water and sewer in 2018. Ξ

Senior-managed Transactions

Siebert Cisneros Shank successfully priced this transaction as senior manager for New York Water on April 4, 2018. The refund-ing portion of the transaction achieved $105.6 million in net PV savings (20.1% of refunded par) for NYW.

In pre-transaction planning, the SCS eval-uated $948 million in current refunding candidates callable on or after June 15, 2018 and assisted NYW in splitting can-didates into two pools to achieve optimal pricing and execution for both.

We sought to maximize the attractiveness to investors of both transactions by mini-mizing overlapping maturities and target-

NYW achieves $105.6 million in net PV savings—20.1% of refunded paring maturities 2029 and beyond so the first issue could take advantage of the current market. We simultaneously developed optimized cash defeasance strategies for the Authority’s cash on hand.

NYW stated a strong preference for a 7.5-year call to complement its existing debt portfolio. Our team compared rela-tive benefits of short-call and couponing options based on Option Adjusted Yields (OAY). On an OAY basis, the bonds with a 7.5-year call and 5% coupon were compa-rable to those with a conventional 10-year par call/5% structure in every maturity offered. California’s recent offering with only 8-year and 5-year call options was also taken into consideration.

SCS put forth an aggressive retail scale for a 7.5-year call structure despite a slightly negative market tone. Select maturities totaling $328 million were offered at 2 bps below market consensus scale. We received $86 million in usable retail orders despite that fact that offered bonds matur-ing between 2029 and 2040 do not gen-erally appeal to retail investors. Although

investor feedback indicated a strong inter-est in a 10-year par call structure, a deci-sive and strong marketing effort enabled SCS to maintain the 7.5-year call structure for all but one maturity during the institu-tional order period.

SCS added a 5% maturity with a 2027 call on the largest maturity in 2040. Yields were increased by 2 to 4 bps along the yield curve to track adjustments in MMD as well as to incentivize participation from institu-tional accounts. Final spreads remained at or below the syndicate price views.

A wide range of accounts placed over $570.4 million of priority orders, which combined with retail subscription, led to an overall subscription level of 1.4x, excluding member stock orders.

The transaction was increased by $34.5 million to absorb oversubscription in the 2040 maturity with a 10-year par call. Additionally the refunding issue gener-ated $105.6 million in net PV savings, or 20.1% of refunded par.

New York City Municipal Water Finance Authority$458,920,000Water & Sewer System 2nd General Resolution Revenue BondsFiscal 2018 Series EE(April)

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New York State Environmental Facilities Corporation$258,340,000State Clean & DrinkingWater Revolving Funds Revenue (NY City Municipal Water Finance Authority), Series 2018 B (November)

Siebert Cisneros Shank’s second consecutive deal as book-running senior manager for the City of Atlanta

NYW refinances water pollution control projects and drinking water projects at below market costs

City of Atlanta (GA)$51,210,000Water & Wastewater Revenue Refunding Bonds, Series 2018A(June)

This was the Firm’s fourth senior-managed transaction for the New York State Envi-ronmental Facilities Corporation since 2015 and its first under the New York Water program since June 2015.

Purpose. Proceeds were used to finance or refinance NYW’s water pollution control projects and drinking water projects at below market costs.

Credit. The bonds are secured and col-lateralized with “mirror bonds” issued by NYW to EFC and other available EFC equity funds. The bonds were rated Aaa/AAA/AAA (Moody’s/S&P/Fitch).

Structuring. SCS provided an extensive structuring analysis prior to pricing, evalu-ating the use of both EFC’s traditional

blended loan model as well as a hybrid model that sought to optimize investment returns on the use of EFC Equity and to grow the revolving fund program.

Market Conditions. The week prior to pric-ing, the market opened with a reserved tone in anticipation of the Mid-Term Elec-tion on November 6th, before improving following the anticipated election result. Munis trended lower in yields through-out the remainder of the week despite a challenging 30-year Treasury auction on Wednesday the 7th.

Marketing Strategy. Taking advantage of a stronger tone in the market during the retail order period, SCS offered bonds at 1 to 3 bps lower than the consensus scale. Retail friendly 3.375% & 4% coupons were used in 2033 and 2038, respectively.

Prior to institutional pricing, SCS engaged numerous institutional investors to assess demand for various coupon structures, resulting in lengthening the serial bonds offered.

EFC limited retail investors to 50% of par in maturities from 2029 to 2048 during retail.

Pricing Results. EFC received $293.6 mil-lion in total retail orders against $119.7 million offered.

All maturities from 2019 to 2032 (all with 5% coupons) were oversubscribed for by between 1.73x to 6.04x. Spreads were reduced by 2 to 5 bps for these maturities heading into the institutional order period.

SCS offered 5% coupons for all remaining bonds and extended the serial bonds to 2039 during the institutional order period.

Institutional investors placed an additional $484.8 million in priority orders. Total sub-scription levels for all maturities ranged from 1.0x to 5.04x.

SCS was able to further reduce spreads by 1 bp from 2029 to 2035, 3bps on the 2043 Term Bond, and 2 bps on the 2048 Term Bond.

Priced on June 12, 2018, this was Siebert Cisneros Shank’s second consecutive deal for the City of Atlanta as book-running senior manager, having senior managed the City’s prior transaction in 2017.

The Bonds were rated “Aa2/AA-” by Moody’s and S&P, respectively. Bond pro-ceeds in addition to a release in debt ser-vice reserve funds, were used to “fix-out” a portion of the City’s outstanding variable rate debt portfolio (maturing 2039 – 2041). Prior to pricing, cash-on-hand was used to terminate the associated swap.

In the year prior to the transaction, our firm had provided the City several unsolicited financing considerations relating to the remarketing of its existing variable rate and monitoring of its outstanding swaps. On Monday, June 11th, SCS requested price views from the syndicate for both 5% and 4% coupons to better gauge pos-sible pricing benefits of a 4% coupon for

the City. After discussions with investors, we recommended the use of 5% coupons as the most optimal approach to leverage interest to further yield reduction.

On Tuesday, SCS released a moderately aggressive preliminary pricing wire, hop-ing to capture some scarcity value in the City’s name, with the 2039 – 2041 maturi-ties pricing at spreads of 28 bps off AAA MMD. After the order period, priority orders reflected a 4.2x oversubscription with the transaction generating more than $217 million of priority orders, $212 million of which came from SCS. Fifteen different investors placed orders, nine of whom were new investors.

At the time of repricing, there were talks of a 2 bp cut in MMD in the respective maturities—SCS proposed tightening spreads 3 bps in all 3 maturities, bringing them to spreads of 25 bps off of the June 11th MMD.

After repricing, Atlanta’s Series 2018A transaction priced 2 bps tighter than NYC Muni Water’s Series FF higher-rated trans-action which priced the same day (Aa1/AA+/AA+). Spreads were 6 bps tighter than the City’s transaction which SCS priced in 2017.

Given SCS’ strong marketing and pricing results, the City was successfully able to “fix-out” $107 million of its variable rate debt at an all-in TIC of 4.15% and a reduc-tion in outstanding par of $55.79 million.

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City of Los Angeles (CA)$359,670,000Wastewater System Subordinate Revenue Bonds, Series 2018-A (Green Bonds) &Refunding 2018-B(October)

GREENBONDS

In December SCS served as book-running senior manager for the City of Columbia’sinaugural Stormwater Revenue Bonds which were rated Aa2 by Moody’s and AA+ by S&P. This was the City’s first trans-action to receive green bond designation and the first stand-alone stormwater trans-action in the U.S. to receive Climate Bond Certification. Proceeds from the Bonds will be used to upgrade and improve the City’s stormwater system, part of a $95 million investment over the next five years to address flooding and stormwater drain-age issues. The Bonds are secured solely by the Net Revenues of the System includ-ing Stormwater Fees collected based on a property’s impervious area.

City of Columbia (SC)$37,900,000Stormwater System Revenue Bonds(City Stormwater Improvements)Series 2018(Green Bonds)(December)

The City’s first transaction to receive green bond designationIn advance of the transaction, SCS worked closely with the City and the working group to evaluate alternatives for desig-nating the bonds “green”—self designa-tion, second-party opinion or certification by the Climate Bond Initiative. We also worked closely with the team to develop the verification letter from Sustainalytics, establish the Master Bond Ordinance for the new credit, and obtain a financial fea-sibility report from Black & Veatch.

Pricing was originally scheduled for December 5th, however, due to the pass-ing of President George H.W. Bush and the closing of the equity and bond mar-kets, SCS coordinated with the City and FA and recommended to pre-market the bonds on Tuesday (12/4) and price Thurs-day (12/6), which ensured that investors had ample time to review and approve the credit during one of the last heavy calen-dars of the year ($9+ billion).

The Bonds were pre-marketed on Tuesday with both 5% and 4% coupons to attract

multiple investor types and in response to early interest from State Farm Insurance for lower coupon bonds.

On Tuesday the bond market rallied after trade war tensions with China escalated significantly due to the US arrest of Huawei executive Meng Wanzhou; MMD tightened 2 – 4 bps in 2020 – 2021, 6 – 7 bps from 2021 – 2027, and 8 bps from 2028 – 2048. SCS released the pre-pricing wire reflect-ed the significant tightening in MMD.

After the order period, the 2021 to 2048 maturities ranged from 1.3 to 6.2 times oversubscribed based on priority orders; the transaction was 4.5 times oversub-scribed on aggregate and generated more than $170 million of priority orders, all of which came from SCS. Because the 2020 maturity did not garner any prior-ity orders by the end of the order period, given the volatility on the short-end of the curve, SCS took the entire maturity into inventory.

SCS served as senior manager for the City of Los Angeles’ Wastewater System in October. Proceeds from the Series 2018-A (Green Bonds) were used to finance the construction and improvement of the System and pay all outstanding Wastewa-ter System Commercial Paper Notes. Pro-ceeds from the Series 2018-B Subordinate Bonds were used to refund a portion of the Variable Rate Refunding Series 2012-D and pay the swap termination payments.

Market Conditions. Throughout the month of October, volatility continued to increase in both fixed income and equities due to trade and protectionism concerns and the market’s view of the Fed continuing with additional rate hikes. Redemptions and

bid-lists remained elevated, but higher rates allowed for continued tax-loss swap-ping in addition to increased customer buying. Primary issuance reached about $6.8 billion for negotiated transactions, and approximately $700 million for com-petitive transactions.

There was a soft tone in the market on the day of pricing, with MMD cuts across the entire curve. Some deals scheduled dur-ing the same pricing week were either pulled out of the market, with their trans-action size decreased or yields raised sub-stantially during repricing.

Marketing. SCS developed a slides-only investor presentation which was viewed by an array of professional retail and institu-tional investors. Almost half of these inves-tors submitted orders. Additionally, SCS evaluated the effectiveness of an alterna-tive couponing structure and sold three non-callable maturities with 3% coupons to retail investors. SCS ultimately took more than $5.2 million bonds into inventory.

Structuring. SCS worked with the City to take out the swap and de-risk the hedged portion of the 2012-D variable rate direct purchase bonds with the proceeds of the Series 2018-B Bonds. The swap termina-tion payments were funded with fixed-

rate 2018-B bond proceeds together with available City funds. The City will no lon-ger have any swap exposure

Pricing Results. SCS ultimately received over $753 million orders from 42 different professional retail and institutional inves-tors. As a result of the syndicate’s strong pre-marketing effort and aggressive pric-ing strategy, the bonds were over 2 times oversubscribed. In spite of a weaker mar-ket tone the day of pricing, SCS was able to maintain spreads ranging from -25 to -1 through 2033.

The Series 2018-B Bonds generated net present value savings of over $1.2 million (0.81% of refunded bonds) after account-ing for the swap termination payment. The spreads to MMD on the Series 2018 Bonds were tighter by up to 26 bps, compared to the City’s transaction priced in May 2017.

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Los Angeles Department of Water & Power (CA)$354,440,000Power System Revenue Bonds, 2018 Series A(March)Siebert Cisneros Shank served Los Ange-

les Department of Water & Power as book-running senior manager in March 2018 for this “Aa2/AA/AA”-rated transac-tion to current refund Power System Rev-enue Bonds, 2008 Series A.

Extensive pre-marketing efforts resulted in a robust book of retail orders of over $348 million by mid-day on March 27th and given the firm tone in the market, SCS and the Department accelerated the retail order period, closing early and complet-ing the pricing on the same day.

The financing was structured as serial bonds with principal amortizing from

Robust premarketing e�orts resulted in retail orders exceeding $348 million2019 to 2038 to match the maturities of the bonds being refunded and provide level savings LADWP. The Bonds were well received and generated over $1.9 billion of orders in total.

The transaction attracted a very large number of investors including the partici-pation of 69 different buyers. Each matu-rity was subscribed for by the end of the institutional order period, which allowed for yield improvements in all maturities. The strong demand allowed spreads to be tightened by up to 6 basis points.

Effective pricing performance by SCS resulted in tighter spreads on the 2034 through 2038 maturities than those of the Department’s Water System 2018A trans-action which priced a month earlier. Using MMD as of the sale date for both transac-tions, the Power System’s 2018A Bonds priced 5 basis points tighter in the 2038 maturity in spread compared to the Water

System’s 2018A Bonds, despite the fact that the Department’s Power System bonds historically price wider than its Water Sys-tem bonds.

The 2018A Bonds achieved the tightest spread to MMD on a 20-year maturity of any Power System bond issue ever sold by the Department.

The refunding achieved approximately $85.8 million of PV savings. The 2018A Bonds had a TIC of 3.36% and an Average Life of 14.3 years.

POWER

Suzanne Shank, Chairwoman & CEO � Elected to CMS Energy’s (NYSE:CMS) and

Consumers Energy’s Board of Directors � Appointed to the Boards of Directors of:

− Global Citizen, the Detroit Institute of Arts, and the Detroit Regional Chamber of Commerce

� Was presented the “W. W. Law Legacy Award” by King-Tisdell Cottage Foundation

� Inducted as a member of the Executive Leadership Council

Henry G. Cisneros, Principal � Received the MALDEF, “Lifetime Achievement,

Excellence in Public and Community Service Award” � Was presented with the Texas A&M-San

Antonio “Dream Maker Award” � Received the NHP Foundation “A�ordable

Housing Leader Award”

Gary Hall, Principal/National Head of Investment Banking

� Elected as Chair of the Finance Committee of the Municipal Securities Rulemaking Board (first African-American to serve in this position)

Derek McNeil, Managing Director/ Head of Mid-Atlantic Region

� Named the Leukemia & Lymphoma Society (LLS) “Man of the Year—Connecticut Chapter”

� Appointed Chairman of the Board for Trey Whitfield Foundation, Inc. (Brooklyn, NY)

Patricia Koetzner, Managing Director, Capit1al Markets

� Elected as President of the Securities Traders Association of New York (STANY)

Dr. James C. Terry, Managing Director/ K-12 Education Specialist

� Appointed to Texas Association of School Business O�cials (TASBO) Mentor Program

Sarah Snyder, Managing Director � Appointed as Board Member for the Ladies First,

The Mid-Atlantic Women’s Public Finance Forum

David Stinfil, Vice President � Selected as a “Rising Star” by the Bond Buyer

EMPLOYEES’ AWARDS, RECOGNITIONS AND ACHIEVEMENTS IN 2018

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A deftly managed pricing strategy e�ectively navigates significant market volatility

Bonds successfully price following the Tax Act of 2017 in the midst of a federal government shutdown

TRANSPORTATION

North Texas Tollway Authority$356,085,000System Second Tier Revenue Refunding Bonds, Series 2018(October)

Siebert Cisneros Shank senior-managed this transaction for the North Texas Tollway Authority in October 2018. Proceeds of the Series 2018 were used to refund all of the NTTA System First Tier Variable Rate Revenue Refunding Bonds, Series 2009D, Series 2011A and Series 2012C in addi-tion to making a deposit to the Shared Second Tier Debt Service Reserve Fund and paying costs of issuance of the Bonds.

Through the refunding, NTTA reduced its variable rate risk from NTTA’s debt profile from 6% to 2.5%. $178.4 million of swaps associated with the Series 2009D Bonds were also terminated in conjunction with the refunding.

The Series 2018 Bonds are secured by a Second Tier lien on a pledge of tolls and other revenues of the NTTA System and all money held by the Trustee in accounts created under the Trust agreement.

Market conditions in the week leading up to pricing were volatile with major central banks ramping up quantitative tightening

programs, the 10-year treasury note rising above 3.25% (highest level since 2011), the 30-year treasury bond exceeding 3.43% (highest since 2014), and the Dow Jones Industrial Average dropping nearly 1,400 points in two days. Munis were under additional pressure from aggres-sive selling spurred by a higher than usual amount of customer sell lists after the rise in rates compelled investors to mark down bond portfolios. In the two weeks preceding pricing, 30-year MMD increased by 26 bps.

Marketing. SCS developed a slides-only investor presentation which was viewed by 59 different investors, 17 of whom submitted orders. Leading up to pricing, SCS worked with the financial advisors to evaluate the effectiveness of bond insur-

ance and the use of alternative couponing on an option adjusted basis to broaden investor demand.

Pricing Strategy. After receiving reads of limited investor appetite for bonds beyond 30 years, SCS deftly maneuvered this vol-atile market by recommending a structure that utilized multiple coupons (4.00% and 4.25%), reduced the principal amount in the 2050 maturity and amortized the reduction in earlier year (2030 – 2038) to limit the risk of widening the spread on the 2050 maturity. This resulted in the 2050 maturity being 3.6x oversubscribed and improved overall net present value savings.

Pricing Results. Despite the volatile mar-ket conditions, SCS received $1.9 billion in priority orders from 75 different investors.

As a result of the syndicate’s strong pre-marketing effort and aggressive pricing strategy, the bonds were over 6.0x over-subscribed and spreads reduced by as much as 8 basis points at reprice. The Bonds generated net present value sav-ings of over $25.7 million (6.8% of refund-ed bonds) and spreads to MMD were up to 2 bps tighter compared to the Second Tier transaction priced in October 2017.

Fort Bend County (TX)$58,785,000Unlimited Tax Road and Refunding BondsSeries 2018(January)

Siebert Cisneros Shank served as book-running senior manager on Fort Bend County’s Series 2018 refunding on Janu-ary 22, 2018—the firm’s fourth senior managed transaction for the County. It priced in the first sizable issuance week of the year with approximately $6.5 bil-lion in volume and was the County’s first transaction since the passage and sign-ing of the Tax Cuts and Jobs Act of 2017which, among other provisions, eliminated the use of tax-exempt bonds for advance refundings and potentially disincentiv-ized the investment in municipal bonds by insurance companies as a consequence of the reduction in corporate tax rates. The

Series 2018 Bonds also priced in the midst of a shutdown of the United States federal government.

The transaction, originally slated for mid-2017 and anticipated to be $93 million in par amount, included three components: a tax-exempt current refunding of the Series 2009 Bonds, a tax-exempt advance refunding of the Series 2012 Bonds and $60 million for road projects. On Novem-ber 2, 2017, the tax bill was introduced in the U.S. House of Representatives which would drastically alter the munici-pal market. By mid-December, it became increasingly clear that the prohibition on the use of tax-exempt bonds for advance refundings would remain in the legislation and would become law. This affected the County’s issuance in two immediate and significant ways: the deal size decreased by approximately $34 million and it com-pelled the County to consider shorter call

dates to retain call flexibility. SCS worked diligently with the County’s financial advi-sor to determine the shortest call date pos-sible without sacrificing price.

The Series 2018 Bonds current refunded $5,430,000 of the County’s outstanding Series 2009 Bonds with a uniform sav-ings structure. The Bonds received an Aa1 (stable outlook) underlying rating from Moody’s and AA+ (stable outlook) from Fitch. On the day of pricing, SCS’ underwriting desk went to market with 5% coupons in maturities 2020 to 2032 and 4% coupons in 2033 to 2038. The transac-tion overall was 3.2 times oversubscribed with orders totaling $188.5 million. At the end of the order period, SCS repriced by reducing yields by 1 to 5 bps across the curve. These adjustments resulted in approximately 5.82% present value sav-ings on the refunding portion of the trans-action and an overall All-In TIC of 3.15%.

Ξ Siebert Cisneros Shank ranked 7th nationally as a senior managing underwriter of transportation bonds in 2018. Ξ

9

GO BONDS, REVENUE BONDS, SECURITIZATIONSSenior-managed transactions

State of Connecticut$889,200,000GO (2018 Series E)GO Refunding (2018 Series F)Taxable GO (2018 Series A)(June)

Philadelphia Authority for Industrial Development$79,460,000City Service Agreement Revenue Bonds (Rebuild Project), Series 2018(November)

New Jersey Sports & Exposition Authority$99,415,000State ContractRevenue RefundingSeries 2018A(November)

City of Pharr (TX)$16,440,000Combination Tax & Revenue Certificates of ObligationSeries 2018(October)

Miami-Dade County (FL)$77,145,000Professional Sports Franchise FacilitiesTax Revenue Refunding BondsTaxable Series 2018(August)

City of Baltimore (MD)$23,595,000(Baltimore City parking System Facilities), Series 2018(August)

City of Laredo (TX)$46,635,000General ObligationRefunding BondsSeries 2018(July)

Prince George’s County (MD)$33,755,000Lease Revenue Refunding BondsSeries 2018A (Tax-Exempt) & 2018B (Taxable)(May)

Oakland Joint Powers Financing Authority (CA)$60,025,000Lease Revenue Refunding Bonds(Oakland Administration Building) Series 2018(May)

Bexar County Hospital District (TX)$283,565,000Certificates of Obligation, Series 2018(April)

Alameda County JPA (CA)$73,495,000Taxable Lease Revenue BondsSeries 2018(March)

Bexar County (TX)$198,035,000Combination Tax & Revenue Certificates of Obligation, Series 2018(December)

City of Mission (TX)$11,690,000(Hidalgo County)Combination Tax & Revenue Certificates of Obligation, Series 2018(October)

10

State of Connecticut$889,200,000GO (2018 Series E)GO Refunding (2018 Series F)Taxable GO (2018 Series A)(August)

Bexar County (TX)$198,035,000Combination Tax & Revenue Certificates of Obligation, Series 2018(December)

On December 13, 2018, SCS served as the book-running senior manager for this offering—SCS’s fourth senior-managed appointment for Bexar County.

The Certificates were issued to finance permanent public improvements to vari-ous County facilities, including detention facilities and various law enforcement centers.

Citing an expansive tax base and a thriv-ing and diverse local economy, Moody’s, S&P, and Fitch all affirmed the County’s ratings at Aaa/AAA/AAA, respectively.

Earlier in the week, other issuers faced a challenging market environment as fewer investors were in the market due to the nearing holidays and year end. Transac-tions priced earlier in the week, in chasing the market, had to widen pricing spreads, and take significant unsold bonds into inventory when investors sought higher credit spreads.

Garnering early feedback from large insti-tutional investors was key in marketing the County’s Certificates; coupons were selectively structured in certain maturities, mindful of yield targets elsewhere. The

early feedback turned to tangible interest and SCS successfully implemented a strat-egy that resulted in a large book of orders, first with wider pricing spreads than dur-ing pre-marketing, and before becoming aggressive in the re-pricing. Nearly every maturity was oversubscribed on a priority basis.

This effective pricing strategy got the anchor institutional investors committed early which then attracted interest from investors who were initially on the side-lines, and resulted in a positive cascad-ing effect. With this heightened investor demand, our desk tightened spreads. The SCS sales desk generated $577mm (98%) of priority orders and garnered orders from 49 investors including $331mm in orders from 33 potentially new investors.

This was the firm’s 12th senior managed transaction for the State of Connecticut. Those issuances have totaled $6.0 billion.

This deal marked two important “firsts” —the highest amount of retail sales the State has received on a GO sale since 1999 (when the records began) and the lowest tax-exempt spreads on the long end of the curve since the State’s 2017A issuance.

The Series 2018 E Bonds were issued to retire the State’s outstanding BANs. Series 2018 F refunded $256 million of prior bonds, realizing $25 million in NPV sav-ings. The Series 2018 A Bonds funded new money projects including the construction of the Innovation Partnership Building at the UConn Technology Park in Mansfield, renovation and construction of housing units in various towns across the State, economic development assistance under the “First Five” program, and the funding of the “Small Business” Express Program and the “Bioscience Innovation Fund.”

The combined tax-exempt structure, totaling $639.2 million was heavily front loaded—nearly 72% of the tax-exempt bonds are amortized within the first 10 years and the remaining $180 million of par amortized evenly between 2029 and 2037. Consistent with the State’s past

practice, the $250 million Taxable Series A new money bonds were structured with level principal over a 10-year period. Select maturities of the 2018 Series E and F Bonds were offered to Connecticut and national retail accounts on a priority basis during the retail order period.

E�ective Investor Outreach. Our aggres-sive retail pre-marketing campaign included print, online, radio and e-mail advertisements. SCS assisted the State in creating a detailed investor presenta-tion that was viewed by 38 investors, 12 of whom placed orders for the transaction.

Market Tone Leading up to Pricing. The week leading up to pricing, the market moved positively, despite geopolitical ten-sions in Turkey dominating the news. The 5- and 10-year MMD were 2 and 6 bps lower respectively while the 10-year Trea-sury was 11 bps lower, helping decrease the State’s borrowing costs. The week of pricing was the largest supply week of the year leading to concerns of higher spreads.

Pricing. To facilitate the best execution of the transaction (with both a retail and insti-tutional tax-exempt pricing and an institu-tional taxable pricing with a price guid-ance marketing period), SCS engaged our two underwriters to oversee the pric-ing of the individual series, allowing for a seamless process over two days.

For the tax-exempt series, SCS evalu-ated the use of sub-5% coupons and short

calls to assist the State in the analysis of the costs/benefits of higher Original Issue Premium bonds. For the Taxable Series, we structured taxable premium bonds to generate sufficient premium to pay for issuance costs. Retail pricing commenced on Tuesday August 14th followed by the institutional pricing on Wednesday.

Tax-exempt Pricing Results. At the end of the order period, the State had received over $1.7 billion of total orders (2.8x over-subscription), including over $874 million of priority orders in addition to the $366 million of retail orders. SCS was able to tighten spreads between 1 – 3 bps in years 1 – 10 and 3 – 6 bps in years 15 and longer, achieving the lowest tax-exempt spreads on the long end of the curve for any deal since the State’s 2017A issuance.

57 different investors placed orders for the Series E & F Bonds.

Taxable Pricing Results. Indications of interest were taken at the same time as the tax-exempt retail order period. After a full day, the Taxable Series A Bonds were 3.3x oversubscribed. allowing spreads on the 10-year maturity that were 15 bps tighter than the State’s taxable competitive trans-action in December 2017.

The aggregate transaction achieved an attractive all-in TIC of 3.54% (for all three series) and the Series F refunding Bonds generated $25 million in PV savings (9.7% of refunded par).

Transaction achieves the most retail sales of any State of Connecticut GO sale on record

11

Bexar County Hospital District (TX)$283,565,000Certificates of Obligation, Series 2018(April)

This was SCS’s fourth senior-managed transaction for the Bexar County Hospital District and priced in April 2018..

The firm’s experience and in-depth knowl-edge of the District’s credit were instru-mental in navigating a volatile market environment underpinning the lead up and pricing for the transaction. Given the changing municipal bond landscape in the post-tax-reform environment, the trans-action was structured to allow the District to maintain as much financial flexibility as possible with short call features. Despite the volatile market and atypical call struc-ture, the bond sale was a complete suc-cess, allowing the District to grow its world class medical services with the addition of a Women’s and Children’s Tower to be financed with these bonds.

The bonds are secured by a limited ad valorem tax and a limited pledge of the District’s excess revenues. This strong credit backing earned the bonds underly-ing ratings of Aa1 and AA+ by Moody’s & Fitch, respectively.

After the elimination of tax-exempt ad-vance refundings resulting from the Tax

Cuts and Jobs Act, the District wanted to have a bit of financial flexibility through the implementation of shorter calls. Rather than the typical 10-year par call feature of the other non-short-call maturities, SCS suggested that a 9-year par call feature would not incur an additional pricing premium over a 10-year par call. As the municipal bond market has evolved after tax reform, these shorter call features are becoming more commonplace and SCS has developed a good understanding of the investors seeking these shorter calls. A very early release of the POS also allowed potential investors ample opportunity to review the credit and in that time.

The volatile market saw the equity market up and Treasury market down one day to reverse the next day. The week of pricing had the second largest volume for the year at $7.59 billion. It began with a relatively stable Treasury market on Monday with the 10-year Treasury lower by 1 basis point. However, on Tuesday, the Treasury mar-ket reversed course and ended the day lower with interest rates increasing by 6 basis points for the 10-year Treasury. This adversely impacted a Little Elm ISD ULT-GO transaction priced on Tuesday which would then serve as a barometer for the District’s pricing. As the market opened on Wednesday, equities, as measured by the Dow Jones Industrial Average, were down

500 points but looking to find footing. This significant volatility was due to vari-ous international factors, dominated by a potential trade war and increased tariffs. SCS recommended a strategy of building up a large book of orders before becoming aggressive in the re-pricing and reducing pricing spreads and interest rates.

At the end of the order period, nearly every maturity was oversubscribed, by as much as 4.1x on a priority basis. With the strong book of orders, we recommended the District lower pricing spreads 2 – 3 basis points in twelve maturities. The final re-pricing included bifurcating the 2037 maturity to include a 5% coupon as well as the 4% coupon initially offered. After re-pricing, several investor accounts dropped from the transaction due to the pricing adjustments for their maturities not being relatively equivalent to other maturi-ties and in light of a complete reversal of the equity markets. SCS stepped up to underwrite $13.975 million (all the unsold bonds) for the District. The intraday recov-ery had sent the DJIA on a 700 basis point swing and ended the day up 200 points.

SCS’s sales desk generated $407 million of priority orders representing 95% of the total priority orders submitted by the underwriting group. 44 investors submit-ted orders including 38 potentially new investors.

SCS’s experience and knowledge of the District’s credit were instrumental in navigating a volatile market environment

New Jersey Sports & Exposition Authority$99,415,000State ContractRevenue RefundingSeries 2018A(November)

On November 5, 2018, SCS served as book-running senior manager for the New Jersey Sports & Exposition Authority’s Bonds, which were issued on a tax-exempt basis to currently refund the Authority’s outstanding State Contract Bonds, 2003 Series A, 2005 Series A, 2007 Series A, and 2008 Series B, and to pay certain costs of issuance related to the Bonds. They are rated Baa2, BBB+, and A- (Moody’s, S&P, and Fitch). The Bonds were issued as serial bonds maturing on September

Targeted marketing results in successful sale during volatile market1st of 2019 through 2025 and are special obligations of the Authority payable from and secured by, primarily but not exclu-sively, amounts appropriated and paid to the Authority pursuant to the New Jersey Sports and Exposition Authority Law.

Marketing. SCS aggressively pre-mar-keted the transaction to a targeted but diverse base of investors. SCS’ marketing plan encompassed all investors currently or recently active in the short-end of the curve for both New Jersey and National paper. SCS also focused its pre-marketing efforts on buyers of the shorter maturities in the recent NJ TTFA Transaction and NJ EDA State Office Building Transaction as a

tailored investor target pool. In addition to this “target” pool, SCS expanded its focus and attempted to identify buyers who did not participate in the TTFA Transaction or the EDA Transaction (or participated in a different maturity range). These investors, who did not appear to participate on the short end of either of these transactions but that SCS’ monitoring of the market indicated remained viable peripheral targets, then comprised our “secondary” pool. SCS utilized these pools as the basis for our investor education and pre-mar-keting efforts as well as our gathering of reads and other market intelligence.

Market Context. Overall Demand Drivers The SMA investor sector has been respon-sible for driving spreads in the short end of the curve to tremendously tight spreads and we actively marketed the transac-tion to this investor group. However, SMA interest in this transaction was extremely

12

Siebert Cisneros Shank served as senior-managing underwriter for the Philadel-phia Authority for Industrial Develop-ment (PAID) in November. Proceeds from the Series 2018 Bonds will be used for the Rebuild Program, the City’s design and construction project to provide greater recreational and educational opportuni-ties for Philadelphia citizens.

The project includes improvements to, and construction, demolition, renovation and equipping of the City’s parks, librar-ies, playgrounds, recreation centers and other related facilities and will enhance quality and delivery of services.

Given the City’s materially improved financial position at fiscal year 2018 end, Moody’s revised its outlook from negative to stable.

Market Conditions. In the week leading up to pricing, municipal bonds traded to lower yields, mostly in conjunction with lower Treasury yields’, with the Thanksgiv-ing holiday, approaching the municipal calendar was light. The week before pric-ing, the muni market improved 6 – 9 bps and was stronger all 4 days (market closed for Veteran’s Day).

The volatility from the equity markets car-ried over to the fixed-income markets but the results were generally positive.

The equity markets were expecting a large sell off at the open on pricing day so the bond markets were stronger by 1 – 2 bps as we prepared to price.

Marketing. SCS led an aggressive market-ing campaign the week prior to ensure the

transaction would not get lost in the holi-day shuffle. SCS highlighted the positive community impact of the Rebuild program, as well as complementary efforts from the City to further invest in strengthening the K-12 system, improving public safety and expanding recreational facilities.

SCS also received investor reads both the day before and the day of pricing, indicat-ing interest from 20 different investors of which 12 submitted orders.

Pricing Results. SCS ultimately received over $376 million orders from 29 different professional retail and institutional inves-tors, 22 of whom were not among the top 20 holders of the City Service Agreement or GO bonds.

As a result of the syndicate’s strong pre-marketing effort and aggressive pricing strategy, the bonds were 4.7 times over-subscribed and SCS was able to bump by 2 – 7 bps across the curve.

Philadelphia’s Rebuild Program provides increased recreational and educational opportunities for Philadelphia citizens

limited due to the transaction’s current rating levels, as well as capacity issues at those SMAs who would consider the State’s appropriation credit. Despite the lack of broad interest from SMA accounts, we were still able to bring certain key SMA accounts as well as a broad and wide group of mutual funds, money managers, and insurance companies into the trans-action.

Market Conditions. The transaction priced during an extended period of volatility in almost all markets. U.S. markets had been focused on a deepening trade war with China and other countries, on FOMC action, and the then-upcoming Federal elections. The week prior to pricing, the 1-, 5-, and 10-year MMD yield moved weaker by 7, 6, and 9 bps respectively, and bond sales that lacked SMA sponsorship were seen to struggle heavily: spreads on the AMT portion of the previous week’s LAX pricing (no SMA interest in AMT) required cuts of up to 30 bps on the shorter maturi-ties—with an average cut of 19.9 bps through 15 years.

Several concurrent factors added further difficulty to the execution. A recent strong supply of NJ appropriation bonds was still

being absorbed by the market; the sched-uled NJ EDA appropriation sale scheduled for the following week offered supply alter-natives for interested investors; additional-ly, all three of these transactions received a higher Baa1 rating level from Moody’s.

Pricing Strategy. SCS carefully crafted our pricing strategy to account for challeng-ing market conditions from the prior week, recent NJ appropriation supply and the need to ensure a clear market for pending additional NJ appropriation supply, lack of SMA participation and the impact of the rating differential from the State’s other similar transactions.

Investor Reception and Results. This strat-egy proved very effective and the transac-tion was met with substantial institutional investor interest. By the end of the pre-liminary order period, SCS had secured over $264 million orders from 18 differ-ent investors across six different investor classes. In addition, the syndicate secured orders from 2 retail clients totaling $1 mil-lion. By the end of repricing, total orders (net of a single drop) had grown to over $274.9 million, with an aggregate sub-scription level of 2.77x.

Through both investor education and gen-eral marketing, SCS was able to drive 5

different SMAs into 5 different maturities. Given the hesitation of SMAs, SCS also focused substantial efforts into other inves-tor classes, with efforts including phone calls between bankers and investor ana-lysts as well as targeted conversations with SCS’ sales team. These efforts succeeded in bringing a number of bond funds, mon-ey managers, and money market funds to the table with sizable orders. Based on the size and quality of these orders, and the resulting substantial oversubscription lev-els on the first three maturities, SCS was able to decrease yields by 8, 6, and 2 bps in the first, second, and third maturities, respectively. Taken on an aggregate par-weighted basis, yields were lowered 0.1 bps in the entire transaction. Further, yield changes in these maturities resulted in a $2.6 million increase of premium (assum-ing final par amounts) and mitigated the effects of the cuts effected in the out years.

Pricing Results. The transaction priced at a TIC of 3.358% and generated over $4 million of cash flow savings in just the first two fiscal years, with the majority focused in Fiscal Year 2020. Aggregate transaction savings for the State totaled over $4.07 million and net present savings totaled $3.68 million, or 3.513% of refunded par.

NJSEA continued from prior page

Philadelphia Authority for Industrial Development$79,460,000City Service Agreement Revenue Bonds (Rebuild Project), Series 2018(November)

13

EDUCATIONSenior-managed

transactions

Ravenswood City SD (CA)$25,000,000General ObligationRefundingSeries 2018(December)

Mississippi Development Bank$65,000,000(Jackson Public School District), Special Obligation Bonds,Series 2018(November)

Dormitory Authority of the State of New York$134,070,000 University EducationalFacilities Revenue Bonds, Series 2018A(September)[Joint senior manager]

Houston ISD (TX)$86,960,000Limited Tax Schoolhouse BondsSeries 2018(June)

Fort Worth ISD (TX)$162,340,000Unlimited Tax School Building Bonds, Series 2018(April)

Ravenswood City SD (CA)$10,000,000 General Obligation Bonds,Election of 2016Series 2018(February)

Spring ISD (TX)$10,385,000Unlimited Tax Refunding BondsSeries 2018(February)

Nearly a dozen students attended a “Bond Finance 101” presentation dur-ing the order period and watched as the underwriting syndicate built an impres-sive book of institutional orders.

Siebert Cisneros Shank priced Fort Worth Independent School District’s on April 11, 2018. This was SCS’ first senior-man-aged transaction for the District, which was awarded as a result of the firm’s strong performance as a co-manager on previ-ous District bond issues and dedicated and persistent banking coverage.

The Series 2018 Bonds were the Dis-trict’s first installment of a $750 million bond program passed in an election held in November 2017 for the purpose of improving learning programs such as Sci-ence, Technology, Engineering, and Math (STEM) and Career and Technical Educa-

Students attend a “Bond Finance 101” presentation during the order period and watch underwriting syndicate in actiontion (CTE), making upgrades to libraries, fine arts, athletics and infrastructure items at 14 high schools, and addressing current classroom overcrowding, as well as pre-paredness for future population growth.

The Bonds were structured as a 25-year amortization, level debt service, and a tra-ditional 5% coupon structure. They were guaranteed by the Texas PSF program and received an “Aa1” underlying rating from Moody’s with a stable outlook and a “AA” underlying rating from S&P with a stable outlook.

The Bonds entered the market against the backdrop of rising tensions between the United States and Russia over the situation in Syria, where a US missile strike seemed imminent. This looming geopolitical con-flict caused a flight to quality, resulting in a positive tone in the fixed-income markets. SCS was able capitalized on these favor-able market conditions because of the robust comprehensive marketing strategy which began more than a week before the transaction. With efforts by the underwrit-ing desk through its unique pre-marketing activities and by SCS’s bankers, our firm

showcased its municipal market clairvoy-ance by understanding that the District’s large urban and demographic profile would fit the investing appetite of social impact funds. In a major effort to expose the transaction to the largest possible uni-verse of potential buyers, SCS reached out to social impact funds such as Alli-anceBerstein’s Impact Municipal Income Shares, which reviews and scores each issuer based on environmental, social, and governance criteria for portfolio inclu-sion. This outreach resulted in a $4 million order by an affiliated fund. Additionally, SCS was able to provide other investors information regarding the District’s unique initiatives to improve lower performing schools.SCS also worked with the District and its financial advisor to conduct a Bond Finance 101 during the order period at the District’s offices. During the presenta-tion, nearly a dozen students watched as the underwriting syndicate, led by SCS, successfully built an impressive book of institutional orders which resulted in all maturities oversubscribed (with the excep-tion of one maturity).

London ISD (TX)$18,955,000Unlimited Tax School Building & Refunding BondsSeries 2018(May)

14

1.80

1.90

2.00

2.10

2.20

2.30

2.40

2.50

2.60

2.70

2.80

2.90

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Drastic swings in sentiment make volatility the norm in 2018

Perspective from the desk

10-year MMD movement since January 2018

Trade war escalates as China announces retaliatory tari�s on U.S. goods(9/18)

Bonds rally after markets become nervous of a trade war with China(5/3)

Strong January pay rolls data viewed as inflationary(2/2)

Yields rise after Chinese o®cials hint at pull back in US Treasury purchases(1/10)

10-year MMD = 2.20%

(1/4/2019)

Powell says Fed could raise rates to slow growth; large bid wanted lists continue as Funds get outflows(10/3)

Bonds fall after Trump expresses optimism in China trade talks; equities continue strong rally(10/31)

Source: Bloomberg and Muni Market Data

Bonds fall as markets fear inflation because of higher oil prices(4/19)

Global equities plunge leading to a flight to quality after political concerns in Italy(5/29)

FOMC raises Fed Funds rate as expected but cuts number of anticipated hikes in 2019 from 3 to 2 (12/19)

US-China trade tensions continue to roil equities while bonds rally(12/6)

Geopolitical events continued to unsettle the markets in 2018. While in 2017 the markets were focused more on North Korea and the Mueller Russia probe, participants in 2018 viewed tariffs and a trade war with China with particular inter-est. Drastic swings in sentiment created a huge amount of volatility, often within a trading session, particularly in equities. Municipal new issue supply was down 25% for 2018, which was not surprising considering the rush to market at the end of 2017, in part because of the elimina-tion of advanced refundings after 2017. Early in the year, however, diminished new issue supply was offset by large dealer inventories of unsold bonds from Decem-ber’s record issance. Adding to the supply pressure was secondary market selling by

institutional customers, particularly bank portfolios, in reaction to the new lower corporate tax rates created by tax reform.

The FOMC raised the Fed Funds rate 4 times in 2018. None of these hikes were a surprise as the Fed has been very trans-parent in its views on the economy. How-ever, in their December meeting there was some disagreement concerning the need to raise rates in 2019. It seems that the FOMC will not be in any hurry to raise short term rates in 2019.

Looking ahead to 2019, there are a few unknowns that could be a concern. It seems likely that the results of the Mueller investigations will be released in the first half of 2019. Any findings that are worse

than expected for the Trump Administra-tion could have a negative effect on the equity markets. As a result, bonds could benefit. Another wild card is the new Congress for 2019. Given the current acrimony in Washington it is unknown if Republicans and Democrats can agree on any legislation. An infrastructure bill seems to have the backing on both sides of the aisle. The difference of opinion will most likely be how to pay for it. Even with-out an infrastructure bill, SCS believes that new issue supply will increase by 8 – 10% from the low level of 2018. Any agreement in DC on infrastructure most likely would include municipal bonds which would increase primary supply above the 8 – 10% increase predicted.

15

In February Ramón Armando Ortega joined SCS as Manag-ing Director in the firm’s Chica-go o¥ce. Mr. Ortega is respon-sible for ensuring the allocation of firm resources and leading the firm’s strategic e¦orts in the Midwest. During the past 15 years Mr. Ortega has helped execute over $7.5 billion in par of senior-managed financings for municipal issuers. Prior to joining SCS, Mr. Ortega held positions at RBC Capital Markets, UBS Investment Bank, BMO Capital Markets and Ramirez & Co. in their Munici-pal Finance Departments. He currently serves as a Board Member of the Chicago Sum-mer Business Institute and pre-viously served as a Member on the Mayor of Chicago’s O¥ce of Budget and Management Community Development Advi-sory Council. He also is Chair-man of the Finance Committee for St. Augustine College. Mr. Ortega holds a BA degree from the University of Central Florida and has a MBA in Inter-national Business and Finance from Rollins College. Mr. Orte-ga holds FINRA Series 50, 53, 63 and 7 licenses.

Derek McNeil joined SCS in April in the firm’s New York o¥ce as Managing Director and Head of the Mid-Atlantic Region. Mr. McNeil has over 22 years of experience as a gener-alist in the public finance arena and has served as the lead banker on a wide range of tax-exempt and taxable financings for issuers throughout the Mid-Atlantic and Northeast regions, including within the District of Columbia, Connecticut, New Jersey, and the Commonwealth of Pennsylvania and numerous other states. His experience as a lead banker for large and complex issuances includes transportation, water and sew-er, higher education, housing and other sectors. Mr. McNeil has a distinctive level of experi-ence with cash flow modeling, rating agency requirements, credit enhancement programs, and other significant variables a¦ecting bond financings.Mr. McNeil earned a B.A. in Economics from Connecticut College and an MBA from Rut-gers University with a concen-tration in finance. He maintains FINRA Series 7, 53, 63 and 79 designations.

Ramón Armando Ortega, Manag-ing Director

(Public Finance)

Won Park,Vice President

(Public Finance)

Derek McNeil,Head of Mid-Atlantic Region

(Public Finance)

Femi Otitoju came onboard as an Associate in the firm’s Washington DC o¥ce in May 2018. His responsibilities include quantitative analysis and assisting senior bankers on transactions for the firm’s Mid-Atlantic clients. Addition-ally, Mr. Otitoju assists clients in the coordination of inves-tor outreach programs which include investor roadshow pre-sentations and retail marketing campaigns. Prior to joining SCS, Mr. Otitoju was an analyst at PFM Financial Advisors for three years, advis-ing municipalities on over $1.2 billion of general obligation, water & sewer and transporta-tion transactions. Prior to join-ing the Public Finance industry, Mr. Otitoju was a summer analyst at J.P. Morgan’s debt capital markets group, advising companies on the issuance of debt.Mr. Otitoju graduated from Howard University in 2015 with a Master of Arts in Economics. He holds Series 52 and 63 FINRA securities licenses.

Femi Otitoju, Associate

(Public Finance)

NEW SCS EMPLOYEES IN 2018

Eloner Habtezghi, Managing Director (Capital Markets)

Michael Rachimi,Managing Director, Fixed-income Sales

(Sales & Trading)

Blake West,Associate

(Capital Markets)

Destini Brodi,Analyst

(Public Finance)

Tania Marin,Sta� Accountant (Administration)

Won Park serves as a Vice President in the firm’s New York o¥ce, having joined SCS in November 2018. Mr. Park is responsible for all aspects of deal structuring and execution support for issuers throughout the Mid-Atlantic and Northeast regions.Prior to joining SCS, Mr. Park worked as Vice President in the Public Finance Group at Loop Capital Markets, and Associate in the Housing and Real Estate Group at Goldman Sachs, where he was actively involved in military housing privatization e¦orts.Mr. Park received a B.A. in Economics with a minor in Mathematics from Middlebury College. He holds FINRA Series 7 and 63 licenses.

Destini Brodi joined Siebert Cisneros Shank in November 2018 after receiving a Bachelor of Business Administration in Finance with a minor in Psy-chology from The College of William & Mary in Williamsburg, Virginia. She currently supports the Northeast and Mid-Atlantic Coverage Groups in the firm’s Public Finance Investment Banking Division. Prior to joining SCS, Ms. Brodi was a summer analyst with The Carlyle Group’s Fund Man-agement Division, where she worked on natural resource and infrastructure Private Equity investments. Prior to Carlyle, Ms. Brodi worked on numerous social impact initia-tives as a Co-Founder of Lead-ership, Entrepreneurship, and Prestige (LEAP)—a non-profit designed to improve econom-ic wealth within St. Lawrence County, New York, by teaching students how to create oppor-tunity within their community. Her experience as an social entrepreneur, allowed her to become an advocate and fun-draising advisor for the Girl Ris-ing Foundation and a student ambassador for UN Women.

Blake Rohde,Sales Assistant

(Sales & Trading)

Elizabeth Charriez, Executive Assistant

(Public Finance)

16

Regional O­ces

New York100 Wall Street18th FloorNew York, NY 10005(646) 775-4850

Atlanta3500 Lenox Road, Suite 1500Atlanta, GA 30326(404) 419-2556

Boston225 Franklin Street, 26th FloorBoston, MA 02110(617) 337-4020

Chicago111 East Wacker Drive, Suite 2605Chicago, IL 60601(312) 759-0400

Source for rankings throughout document: Thomson Reuters/SDC(Note: Senior manager rankings are full credit to book-runner, equal if joint; co-manager rankings are full credit to each co-manager. All rankings in this document are for the full year of 2018 and as of January 15, 2019.)

Dallas325 N. Saint Paul St., Suite 3100Dallas, TX 75201(469) 513-4043

Detroit535 Griswold Street, Suite 2250Detroit, MI 48226(313) 496-4500

Fort Lauderdale110 E. Broward, Suite 1700Ft. Lauderdale, FL 33301(954) 315-3816

Grand Rapids250 Monroe NW, Suite 400Grand Rapids, MI 49503(616) 655-1710

Honolulu500 Ala Moana Blvd., Suite 400Honolulu, HI 96813(800) 529-3133

Houston440 Louisiana, Suite 712Houston, TX 77002(713) 222-1585

Los Angeles660 South Figueroa St., Suite 1720Los Angeles, CA 90017(213) 236-0521

Miami801 Brickell Avenue, Suite 900Miami, FL 33131(305) 350-5642

Philadelphia1650 Market Street, 36th FloorPhiladelphia, PA 19103(267) 207-2930

Sacramento770 L Street, Suite 950Sacramento, CA 95814(916) 449-3995

San Antonio454 Soledad Street, Suite 201San Antonio, TX 78205(210) 798-2663

Seattle1455 NW Leary Way, Suite 400Seattle, WA 98107(206) 621-8903

St. Louis1221 Locust Street , Suite 803Street Louis, MO 63103(314) 588-8490

Washington, DC1025 Connecticut Ave., NW Ste. 509Washington, DC 20036(202) 872-8050

www.scscapital.com

This document is for distribution only under such circumstances as may be permitted by applicable law. It has no regard to the specific investment objectives, financial situation or particular needs of any specific recipient. It is published solely for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any securities or related financial instruments. This publication is based on information obtained from sources believed to be reliable but is not guaranteed as being accurate, nor is it intended to be a complete statement of summary of securities, markets or developments referred to in the newsletter. The information provided herein is not an official transaction confirmation or account statement; it is likewise not an offer to sell, nor a solicitation of an offer to buy securities. Any opinions expressed in this document are subject to change without notice and Siebert Cisneros Shank is not under any obligation to update or keep current the information contained herein.

Member FINRA & SIPC

Oakland1999 Harrison Street, Suite 2720Oakland, CA 94612(800) 529-3133(510) 645-2245

East & West Coast Headquarters

At Siebert Cisneros Shank, Mr. Hall is responsible for managing all bankers and leading the firm’s execution strategy for business development with municipal bond underwriting, origination and financial advisory services nationwide.A Chicago native, Mr. Hall’s professional career spans over 25 years and includes positions in government, law and investment banking. Prior to joining Siebert, Mr. Hall was an executive director in the public finance-investment banking group of JPMorgan Securities L.L.C.. Earlier he was a member of the merger and acquisitions group of

Banc One Capital Markets Inc., and practiced law in the corporate finance department of Gardner, Carton and Douglas (now Drinker, Biddle and Reath).

Mr. Hall worked for the U.S. Department of Trea-sury as a White House Fellow under President Bill Clinton and in the Mayor’s O¥ce of Budget and Management for the City of Chicago.

Mr. Hall is a member of the Advisory Board of the University of Chicago Harris Public Policy School’s Center for Municipal Finance, the Executive Com-

mittee of the Bay Area Council and a trustee for the Head-Royce School in Oakland. Hall received a bachelor’s degree from Howard University and a law degree from the University of Notre Dame.The MSRB Board of Directors, which has 11 independent public members and 10 members from firms regulated by the MSRB, including broker-dealers, banks and municipal advisors, establishes regulatory policies and oversees the operations of the MSRB, the principal regulator of the municipal securities market.

Gary Hall, MSRB (continued from page 1)