Services for Issuance of General Obligation Bonds

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

For most general obligation bond issues, a competitive sale is the preferred method of sale.  (See the article on Bond Sale Methods.) The following is a summary of the services provided by WM Financial Strategies, in its capacity of independent financial advisor, for a competitive sale of general obligation bonds. 

  Bond Structuring 

As a first step in the bond 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 bond accounts, bond issue dates, bond payment dates, bond pricing and procedures for investment of funds. 

  Document Preparation

WM Financial Strategies prepares the notice of sale and bid form and recommends the financial provisions for inclusion therein including, among others, rate limitations, the price at which the bonds may be sold, basis for award of bonds, date of sale, accepted methods for submission of bids and provisions with respect to the good faith deposit.

WM Financial Strategies also works with bond counsel in the development of the bond ordinance (or resolution), continuing disclosure agreement and bond closing documents.

  Official Statement Preparation 

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

  Paying Agent

WM Financial Strategies assists the issuer in selecting a paying agent/registrar/transfer agent through a competitive proposal process.

  Marketing Plan

WM Financial Strategies develops a marketing plan for the bonds including (a) identifying the information to be distributed to prospective underwriters (bidders), (b) arranging printing and distribution of the official statement, notice of sale and bid form, (c) assisting in the arrangements for advertising the bond sale, and (d) recommending the date and time for the bond sale.

In a competitive bond sale, WM Financial Strategies' goal is to maximize the number of bids received by making broker dealers throughout the country aware of the sale and by offering both traditional and modern electronic methods for submission of bids.  By making documents available electronically at and by offering electronic bidding, prospective bidders are able to review the documents and arrange submission of a bid in as little as one hour prior to the sale.  WM Financial Strategies use of aggressive marketing has resulted in the receipt of as many as 14 bids on recent sales.

  Sale Timing and Market Conditions

WM Financial Strategies believes that bond sale timing 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 bond sales on dates in which there may be unusual market fluctuations or a large number of competing issues.

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 bond market.

  Credit Review and Rating

WM Financial Strategies advises the issuer whether to sell the bonds as unrated, rated or insured bonds.  When a rating is desirable, WM Financial Strategies uses its best efforts to obtain the highest possible rating for the bond issue. The process utilized includes making a credit review of the issuer, 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 result in a "AA" bond rating.   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 bond closing) to determine whether insurance acquisition is cost effective.

  Services at Time of Bond Sale 

WM Financial Strategies represents the issuer at the time of the bond sale. In that regard, assistance is provided in tabulating and comparing bids and in analyzing each bid for conformance to the bidding specifications. Thereafter, WM Financial Strategies recommends whether to accept the best bid or reject all bids. WM Financial Strategies maintains proprietary software for analyzing bids on the basis of either net interest cost or true interest cost and uses this software and its laptop computer in making an onsite analysis of the bids received.

  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 competitive bond issues.

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

  Technical Services

WM Financial Strategies provides technical services required to effectuate the bond 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 bond 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.

Copyright.  Information on this website is the property of WM Financial Strategies.  Reproductions may not be made without the express consent of
WM Financial Strategies.