The editors of The Bond Buyer, Thomson Medias daily newspaper of municipal finance, last night awarded their 2004 Deal of the Year award to the Citizens Property Insurance Corp. of Florida for its sale of $750 million of bonds for high-risk insurance accounts.
In setting up the CPIC and accessing the capital markets, the state of Florida stepped in to provide a vital service, unavailable from the private sector selling bonds to raise money for an insurance program for people in hurricane-prone areas, said Amy B. Resnick, editor in chief of The Bond Buyer, who presented the award to CPIC chief executive officer Robert Ricker and chief financial officer Jessica Buss at a black-tie gala Tuesday night.
All municipal bond transactions sold between Oct. 1, 2003, and Sept. 30, 2004, were eligible for this years awards. The deals being honored were selected by the newspapers editors and bureau chiefs from more than 60 nominees.
The Deal of the Year awards were launched in 2002 to honor the public-sector issuers of the most innovative deals in the market each year. Judging criteria include the potential for the transaction to be used as a model by other states and local governments around the nation, and the extent to which the issuer used new financing techniques or credit structures.
The other regional finalists for the award were:
Wisconsins sale of $1.79 billion of 2003 general fund annual appropriation bonds for pension obligations. The deal helped the state fund its unfunded obligation to the employees retirement system, including the obligation for sick leave, which introduced a new municipal credit structure to the international market.
The Hugh L. Carey Battery Park City Authority for its $1.04 billion sale of Series 2003 A, B, and C bonds that helped the authority to finance its capital plan, while also providing cash flow savings to New York City.
The Arizona School Facilities Board state school trust revenue bonds, Series 2003A and 2004A, in which the state became the first in the nation to sell bonds backed by state-owned land and investment to help pay the costs of improving public school facilities.
California for its $10.90 billion of economic recovery bonds, which refinanced short-term debt sold a year earlier to finance ongoing government operations and enabled the state to develop a long-term solution to a budgetary structural deficit.
The deals receiving honorable mention were:
The Maryland Health and Higher Education Facilities Authoritys $253.86 million sale for the University of Maryland Medical Systems.
The New Mexico Finance Authoritys $1.14 billion 2004 state transportation bond issue.
The Chicago Public Schools $133 million 2003 tender and remarketing of 1992 and 1993 bonds; $19.77 million refunding, Series 2004A; $153.53 million refunding, Series 2004B; and $21.62 million of general obligation limited tax school financing bonds, Series 2004C.
Memphis Light, Gas, and Waters $1.39 billion of Series 2003 A and B bonds.
The Alameda Corridor Transportation Authoritys $475.29 million of tax-exempt subordinate-lien revenue refunding bonds, Series 2004A; and $210.73 million of taxable subordinate-lien revenue refunding bonds, Series 2004B.
