Services for Issuance of Municipal Lease Obligations

WM Financial Strategies' services are designed to reduce the issuer's workload
while resulting in the lowest possible financing costs.

While municipal lease obligations have gained market acceptance over the past decade, due to the complexity of the issues, a negotiated sale remains the preferred sale method for these securities.  The following is a summary of services provided by WM Financial Strategies for the negotiated sale of lease obligations. 

  Lease Obligation Structuring 

As a first step in the lease obligation sale process, WM Financial Strategies develops a financing plan that includes recommendations with respect to the maturity schedule, redemption provisions, designation and flow of funds for lease accounts, the establishment of reserve funds, the leased assets that will be provided as collateral, issue dates, payment dates, pricing and procedures for investment of funds. 

   Document Preparation

WM Financial Strategies works with special tax counsel in the development of the financing terms to be incorporated in the indenture, lease, continuing disclosure agreement and closing documents. 

  Official Statement Preparation 

WM Financial Strategies prepares, or assists with the preparation of,  the Preliminary and Final Official Statement (collectively the "Official Statement") used in conjunction with the sale of lease obligations. In preparing the Official Statement WM Financial Strategies collects, researches, develops and compiles the data for use therein.  

  Trustee Selection

WM Financial Strategies assists the issuer in selecting a trustee through a competitive proposal process.

   Sale Timing and Market Conditions

WM Financial Strategies believes that timing of the sale should be governed primarily by the timetable of capital spending requirements established by the issuer. For purposes of long-term planning, timing to the market is a gamble which should avoided. For purposes of short-term planning, WM Financial Strategies seeks to avoid sales on dates in which there may be unusual market fluctuations or a large number of competing municipal securities.

In order to appropriately advise the issuer on the establishment of a desirable sale date and to keep the issuer abreast of the cost of the financing plan under development, WM Financial Strategies follows and advises upon the general economic conditions which may affect the capital markets as well as specific events then occurring in the market.

  Market Analysis

In order to appropriately advise issuers on the establishment of a desirable sale date and to keep clients abreast of the cost of the financing plan under development, WM Financial Strategies monitors the following:

  • The general condition and trends of the economy.

  • The condition of capital markets.

  • The status of recently sold municipal securities.

  • The supply of issues coming to market and, in particular, potentially competing issues.

  Credit Review and Rating

WM Financial Strategies advises the issuer whether to sell the lease obligations as unrated, rated or insured obligations.  When a rating is desirable, WM Financial Strategies uses its best efforts to obtain the highest possible rating for the lease obligations. The process utilized includes making a credit review of the issuer, reviewing the security features of the lease obligations, advising the issuer of its findings, rehearsing possible rating questions, making an analysis of areas which can be expected to be raised by the rating agency, preparing supplemental reports and schedules for the rating agency, and preparing for a possible visit to the rating agency, if desirable. 

Additionally, WM Financial Strategies reviews the feasibility of acquiring a municipal bond insurance policy which results in a "AA" rating on the lease obligations.   In determining the feasibility of insurance, WM Financial Strategies prepares a present value analysis of the debt service based on insured and uninsured interest rates.  The present value savings are then compared to the insurance premium (that is a one time fee paid at the time of the closing) to determine whether insurance acquisition is cost effective.

  Marketing Plan

WM Financial Strategies has developed methods to bring competition to a negotiated sale and to insure that underwriters compete for an issue based on uniform financing terms.  In that regard, WM Financial Strategies develops a marketing plan that includes preparation of (i) a request for proposals that results in a highly competitive proposal process and (ii) a near final official statement to accompany the RFP so that firms are able to quote genuine rates and prices rather than indications of what may transpire in the future. As part of the proposal process firms are required to quote firm interest rates or offer formalized rate indexing to insure that interest rates quoted are consistent with market conditions rather than indications of rates that will not be realized.

  Post Proposal Analysis and Negotiations

WM Financial Strategies makes a detailed analysis of the proposals submitted, prepares a spread sheet summary of the proposals received and recommends the firm to serve as the underwriter. Following the selection of the underwriter, WM Financial Strategies works to insure that promises made are promises kept.

  Technical Services

WM Financial Strategies provides technical services required to effectuate the lease closing. These services include, among others, a report of all final mathematical computations (source and disbursement of funds, costs of issuance and debt service schedules), the transfer of funds at the time of the closing and obtaining CUSIP identification numbers.



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WM Financial Strategies
11710 Administration Drive
Suite 7
St. Louis, Missouri 63146

Phone (314) 423-2122

DISCLAIMER: The material contained at is for informational purposes only and is not an offer to sell or a solicitation to buy any security. Nothing contained herein should be viewed as investment advice or as constituting a recommendation to buy, hold or sell the obligations referred to herein. WM Financial Strategies is an independent financial advisor serving government entities exclusively and is not a broker dealer. Nothing contained herein should be considered as advice to any governmental entity. WM Financial Strategies makes recommendations to its governmental clients only after a complete review of their particular financial needs and circumstances and such circumstances and needs often require the additional assistance of nationally  recognized bond counsel or other legal representative.  Links to any external websites are intended for information purposes only and are not an endorsement or concurrence with any opinion, service or product referenced at the site.

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WM Financial Strategies.