2009 Far West Deal of the Year

In December 2009, at a ceremony at the New York Academy of Sciences, The Bond Buyer, the leading daily, national public finance newspaper in the United States for over 100 years, awarded the Chawanakee Unified School District (the "District"), the small issuer Far West Deal of the Year award. Jeff Small of Capitol PFG and Todd Smith of Southwest Securities at the Deal of the Year ceremony in New York. The award recognizes some of the country's most innovative municipal bond issuers for transactions that finance projects including affordable housing, highways, schools, property tax relief, flood control, street improvements and airports. The District was in progress of constructing a new high schol project pursuant to a lease-leaseback contract.  The project was approved for financial hardship funding from the State of California.  Due to the financial crisis, the State suspended allocations of construction funding resulting the District being unable to perform under the contract. Capitol PFG structured a $68.7 million bridge loan to be repaied when State funds were received.  Due to the uncertainties associated with the crisis, and to minimize the potential impact on the District's General Fund, a 30 year financing was structured.  The financing was prepayable at the District's option anytime and without penalty.  The District was able to repay the loan from the receipt of State funds prior to making debt service payments from its General Fund.   Jeff Small of Capitol PFG accepting the Deal of the Year trophy.

2008 Far West Deal of the Year

On December 3, 2008, at a ceremony at the New York Academy of Sciences, The Bond Buyer awarded Yuba Levee Financing Authority (the "Authority"), the small issuer Far West Deal of the Year award (click here to read the Bond Buyer article announcing the Deal of the Year winners). Jeff Small of Capitol PFG, Yuba County Supervisor Mary Jane Griego, Yuba County Administrator Robert Bendorf, and Todd Smith of Southwest Securities accept the Deal of the Year award at the ceremony in New York.   The Authority issued revenue bonds in the amount of $78.37 million on September 23, 2008.  The bonds provided the local match required for a $138.5 million grant approved and provided by the State of California for the completion of the County's Phase 4 Feather River Setback Levee Improvement Project (the "Project"). Mary Jane Griego, Robert Bendorf, Todd Smith and Jeff Small were all smiles after the Awards Ceremony. The Project is significant because it is the only large scale, fully funded flood control project in California's Central Valley.  When complete, the Project will provide 200 year flood protection to a strategically improtant part of Yuba County.  The Project area has a history of devastating floods that have taken lives and destroyed property.  The Project will allow for conitnued real estate development and prosperity in the Southern portion of Yuba County.  The financing structure was designed by Capitol Public Finance Group, of Sacramento, California, the Authority's Financial Advisor.  The financing received recognition because it is innovative and reduces risk to the Authority.  The financing was structured in a manner intended to be repaid from impact fees from development.  Annual debt service payments were delayed until March 1, 2015, in order to allow time for the economy to rebound and new development to occur.  The financing structure is innovative because the deferred payments required the issuance of a taxable bond whose sole purpose was to make payments on itself and a tax-exempt bond issued for project costs. Robert Bendorf and Mary Jane Griego described the levee improvement project and financing plan during the ceremony. The financing was underwritten by Southwest Securities, a subsidiary of SWS Group Inc. (NYSE: SWS).  The bonds had a true interest cost of approximately 5.33%, including both taxable and tax-exempt bonds.  It is the only deal to be sold this year with a par call on taxable bonds.