The Bond Buyer today named offerings that financed urban development, schools, pension obligations, ongoing state government operations, and property insurance where the private sector could not as the five regional winners of its 2004 Deal of the Year Awards.
Five other deals, one from each region of the country, also received honorable mentions. Those deals financed health care, schools, highways, a freight railroad, and natural gas purchases.In all, the awards and honorable mentions recognize accomplishments in virtually all sectors of public finance. This year in particular, the deals being honored and an even larger number of nominees include several that were sold to help governments manage fiscal stress.
Begun in 2002, The Bond Buyers Deal of the Year Awards honor innovation in the municipal finance market.
The awards are presented to one issuer in each of the five geographic regions covered by the newspaper for transactions that came to market between Oct. 1, 2003, and Sept. 30, 2004.
A winner of the overall 2004 Deal of the Year Awards will be named from among the regional winners at a black-tie dinner in New York City on Dec. 14.
The regional winners are:
Northeast The Hugh L. Carey Battery Park City Authority for its $1.04 billion of Series 2003 A, B, and C bonds.
Southwest The Arizona School Facilities Board state school trust revenue bonds, Series 2003A and 2004A.
Midwest Wisconsin for its $1.794 billion of 2003 general fund annual appropriation bonds for pension obligations.
Southeast The Citizens Property Insurance Corp. of Florida for its $750 million of high-risk accounts senior secured bonds, Series 2004.
Far West California for its $10.896 billion of economic recovery bonds.
The winners, chosen by The Bond Buyers bureau chiefs and editors, come from a pool of more than 60 nominations of 43 different transactions.
The Battery Park City Authority bonds were sold to modernize the authoritys credit and restructure its debt to finance a $90 million capital plan, while also providing cash flow savings to New York City in an area immediately across the street from the World Trade Center site.
The Arizona School Facilities Board first sold taxable debt, then received permission from the Internal Revenue Service to sell tax-exempt bonds backed by state-owned land and investment earnings in the State Land Trust and State Permanent Fund to help pay the costs of improving public school facilities.
Wisconsin sold taxable pension obligation bonds that helped the state fund its unfunded obligation to the employees retirement system, including the obligation for sick leave, that introduced a new municipal credit structure to the international market.
The Citizens Property Insurance Corp. sold bonds to raise money for an insurance program for people in hurricane-prone areas who could otherwise not get property insurance. The financing bolstered claims-paying ability in the high-risk account just months before the state was hit by four hurricanes in rapid succession.
Californias economic recovery bonds came to market after voters approved the sale of long-term debt to refinance short-term debt sold a year earlier to finance ongoing government operations and enable the state to develop a long-term solution to a budgetary structural deficit.
The deals being recognized with honorable mentions are:
Northeast The Maryland Health and Higher Education Facilities Authoritys $253.86 million sale for the University of Maryland Medical Systems.
Southwest The New Mexico Finance Authoritys $1.137 billion 2004 State Transportation Bond Issue.
Midwest The Chicago Public Schools $133 million 2003 tender and remarketing of 1992 and 1993 bonds; $19.765 million refunding, Series 2004A; $153.53 million refunding, Series 2004B; and $21.62 million of general obligation limited tax school financing bonds, Series 2004C.
Southeast Memphis Light, Gas, and Waters $1.392 billion of Series 2003 A and B bonds..
Far West The Alameda Corridor Transportation Authoritys $475.292 million of tax-exempt subordinate-lien revenue refunding bonds, Series 2004A; and $210.731 million of taxable subordinate-lien revenue refunding bonds, Series 2004B.
