Bond Summit – South Carolina JEDA...Bond Summit – South Carolina JEDA. Discussion on High Yield Bonds. WALTER GOLDSMITH, Managing Director. 1355 Greenwood Cliff, Suite 400. Charlotte,

Bond Summit – South Carolina JEDA

Discussion on High Yield Bonds

WALTER GOLDSMITH, Managing Director

1355 Greenwood Cliff, Suite 400

Charlotte, NC 28204

Office: (704) 926-2453

Email: [email protected]

MIYUN CHO FELLERHOFF, Managing Director

One North Wacker Drive, Suite 2000

Chicago, IL 60606

Office: (312) 596-1532


KIMBERLY WITHERSPOON, Shareholder

1 North Main Street, 2nd Floor

Greenville, SC 29601

Office: (864) 240-3255


Agenda

1

I. Introductions

II. Panel Discussion

FIRM OVERVIEW

• Provide business, litigation and financial legal services to local, regional, national and international clients

• 112 attorneys in Charleston, Columbia, Florence, Greenville and Myrtle Beach

• Oldest and one of the most extensive public finance practices in SC

FIRM OVERVIEW

3

FIRM OVERVIEW

• 11 public finance attorneys• Advise private colleges and universities,

foundations, nonprofit hospitals, senior living communities and nonprofits

• Assist in mergers, acquisitions, expansions, affiliations and capital improvements

• Closed over $1.58 billion of bond transactions in 2018

PUBLIC FINANCE PRACTICE

4

B.C. Ziegler and Company | Member SIPC & FINRA

ZIEGLER INVESTMENT BANKING

PRESENTED BY

Miyun Cho FellerhoffManaging Director and Practice [email protected]

ZIEGLER GENERAL MUNICIPAL & STRUCTURED FINANCE

October 24, 2019

mailto:[email protected]

ABOUT US

ZIEGLER is a privately held, national boutique investment bank, capital markets and proprietary investments firm. Specializing in the healthcare, senior living and education sectors, as well as general municipal and structured finance, enables us to generate a positive impact on the communities we serve.

FUNDS

INVESTMENT BANKING CAPITAL

INVESTMENT BANKING

ADVISORY

CAPITAL MARKETS +

INVESTMENT BANKING

CAPITALMARKETS

PROPRIETARY INVESTMENTS

Advisory, financing and capital planning solutions in healthcare, senior living and educational sectors as well as general municipal and structured finance

Active participant in municipal sales and trading including public, tax-exempt, taxable, private placement and preferred trading markets

Providing opportunities for investors in senior living, healthcare services & technology solutions

6

• Founded in West Bend, WI in 1902, Ziegler began building its reputation for financing not-for-profit organizations with a loan to Holy Angels Catholic Church in 1913

• Today, Ziegler is a full-service, privately-held specialty investment bank and broker dealer providing its clients with capital raising, equity and fixed income sales & trading, and research

COMMITMENT TO PUBLIC FINANCE

7

NATIONAL FOOTPRINT

8

CHICAGO, ILHeadquartersOne North Wacker DriveSuite 2000Chicago, IL 60606

NEW YORK2 Grand Central Tow er 140 East 45th StreetSuite 2200New York, NY 10017

NASHVILLE, TN 150 3rd Avenue SouthSuite 1150Nashville, TN 37201

established

1902

number of associates

140

Registered offices nationally

23

HEADQUARTERED at One North Wacker Drive in Chicago with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, strategic advisory services, fixed income sales & trading and research. .

STRUCTURE & SERVICES

9

Clients: Institutional Investors

HEALTHCARE SENIOR LIVING EDUCATION STRUCTURED FINANCE

INVESTMENT BANKING

• Advisory Services• Bond Financing• Corporate Finance• Private Placements• Seed Capital

CAPITAL MARKETS

• Primary Fixed-income Underwriting

• Syndicate Management

• Secondary Institutional Sales & Trading

• Private Placements• Taxable & Tax-exempt• Credit Focused

ADDITIONAL SERVICES

• FHA/HUD Financing Programs

• Research

PROPRIETARY INVESTMENTS

• Providing opportunities for investors in

• Senior Living• Healthcare

Services• Healthcare

Technology Solutions

PROVIDING CLIENTS with capital raising, strategic advisory services, equity and fixed-income sales & trading, and research, while specializing in healthcare, senior living and education sectors.

GENERAL MUNICIPAL & STRUCTURED FINANCE

10

•Ziegler added its General Municipal and Structured Finance (“GMSF”) practice in May of 2014. Prior to joining Ziegler, the GMSF team worked together at another private investment bank. The team joined Ziegler because of the depth and breadth of Ziegler’s non-investment grade investor base.

•Each Managing Director of the GMSF team has in excess of 30 years of experience in public finance investment banking and each has extensive project finance experience in addition to decades of experience working with large municipal issuers such as the State of Illinois, the City of Chicago, the City of New York, the State of California and other large issuers as Co-Manager in the past and currently.

•Project finance transactions include waste to energy, recycling, alternative energy, and P3 projects.

•Ziegler has successfully structured, sold and closed ten municipal solid waste to re-engineered fuel transactions and has five additional transactions scheduled to close by year end 2019.

•Ziegler’s GMSF team and our underwriting and sales team have significant experience in structuring and selling “to be created” property and sales tax backed transactions.

•Ziegler underwrote over $2.6 billion and directly placed an additional $2.5 billion of securities in 2018.

GENERAL MUNICIPAL & STRUCTURED FINANCE TRANSACTION HIGHLIGHTS

11

Introduction to First Tryon Advisors



Charlotte, NC 28204

Office: (704) 926-2453


Overview of the Firm

Overview of First Tryon Securities, LLC Founded twenty years ago and headquartered in Charlotte,

North Carolina, First Tryon Securities, LLC is a regionally focused independent, privately owned securities firm.

The firm is registered with both the Municipal Securities and Rulemaking Board and the Securities and Exchange Commission. First Tryon employs 23 registered representatives.

First Tryon Advisors First Tryon Advisors is a business of First Tryon Securities, LLC

and operates as the Financial Advisory arm of the firm.

First Tryon Advisors has a full service financial advisory practice serving the needs of cities, towns, school districts, counties, utilities, colleges/universities, hospitals and not-for-profits in the Southeast region.

First Tryon does not serve as an underwriter and only provides financial advisory services to our clients.

Municipal Sales & Trading Desk The financial advisory team at First Tryon has access to real-

time market information for tax exempt and taxable securities through our trading platform.

Our desk assists our clients when pricing bonds in the public markets – ensuring the proposed spreads provide the best deal for the client.

First Tryon’s annual trade volume exceeds $2 billion in par amount.

Office Locations The firm has offices in Atlanta (GA), Boone (NC), Charlotte

(NC), Gulf Breeze (FL), Jacksonville (FL), and Sterling (VA).

13

Gulf Breeze, FL

J ac ksonville, FL

Atlanta, GA

Charlotte, NCBoone, NC

S terling, VA

First Tryon Advisors Experience

The team at First Tryon Advisors has a tremendous amount of experience serving clients in the Southeast.

14

City of Tega Cay

Orangeburg County

Lexington Medical Center

Town of Fort Mill

Patriots Energy Group

USC Upstate

Caldwell County

Lenoir-Rhyne University

Davidson College

East Carolina University

Fayetteville PWC

Methodist University

City of N. Charleston

Chesterfield County

Fripp Island PSD

Orangeburg Regional Medical

Center

PittCounty

Queens University

City of Lincolnton

Mount Pleasant Waterworks

Town of Mount Pleasant

Charleston County

Florence W&S

City of Sumter

Dorchester County

Mason Prep

Beaufort-Jasper W&S

Authority

Town of Summerville

NC State University

Town of Pageland, SC

Cleveland County Family

YMCAYMCA of Asheville

Hilton Head Public Service

District #1

N. Charleston Sewer District

Kiawah Island Utility System

Renewable Water Resources

Duplin County

Orange W&S Authority

Town of Carolina Beach

City of Monroe

City of Charleston

Wilson County

Town of Mooresville

Appalachian State

University

Town of Blowing Rock

UNC Asheville

City of Rock Hill

Town of Weaverville

Town of Carrboro

UNC School of the Arts

Randolph County

City of AlbemarleNC A&T State

University

Wingate University

Columbus County

City of Florence

Kershaw County

Spartanburg Water

Halifax County

Burke County

Town of Coward

City of Mount Holly

Camden County

City ofDunn

City of Hendersonville

Berkeley County SD

Furman University

Town of Fletcher

City of Darlington

Polk County Transylvania

CountyWestern Carolina

University

Haywood County

Laurens County W&S Commission Greenville

Water System

Gardner-Webb UniversityTown of

Woodfin

Meredith College

Guilford College

Scotland County

Fayetteville State University

Cape Fear Valley Health System

UNC Pembroke

University of North Carolina System

NC A&T Real Estate Foundation

Town of DavidsonTown of

MatthewsStanly County

Elizabeth City State University

UNC GreensboroRandolph Hospital

Hampton Regional

Medical Center

City of Conway

City of Woodruff

Bladen County

City of Fountain Inn

Calhoun County

UNC TV

CaroMont Health

Tri-County Tech. College

Pickens County

City of Anderson

City of Greenville

Anderson County

NC Central UniversityFranklin County

City of Greensboro

Guilford County

New Hanover County

Dillon County Board of Education

City of Myrtle Beach

UNC Wilmington

Community School of Davidson

William Peace University

Town of Sullivan’s

Island

Fletcher School

Town of Leland

Clinton-Newberry

Natural Gas

Town of Surfside Beach

Iredell County

Rowan County

City of Concord

Catawba CountyTown of

CorneliusPfeiffer

UniversityCity of

Gastonia

City of West Columbia

Kershaw and Lee County

Water

Lancaster County

Natural Gas

Lancaster County W&S

District

Horry County

Darlington County

Florence County

Marion County

Greenville Tech. Charter High School

Anderson University

Abbeville County

City of Greer

City of North Augusta

City of Aiken

The Citadel Foundation

Laurens CPW

Bulloch County

City of Durham

Powdersville Water District

Dalton Utilities

DeKalb County School District

Whitfield County

Boiling Springs Fire District

City of DaltonFultonCounty

Metropolitan Atlanta Rapid Transit Auth.

City ofSuwanee

Effingham County

BryanCounty

Fulton County Schools

Catoosa County

City of Richmond Hill

CravenCounty

City of Beaufort

City of Fayetteville

Charlotte Country Day School

Long County

City of Folly Beach Berkeley

County

Murray County School District

Agenda

15

I. Introductions

II. Panel Discussion

Roadmap for Panel Discussion

Topics Current Interest Rate Environment Investor Appetite Taxable Markets Sector Specifics

– Industrial Development Bonds– Changes in Senior Living Multi-State Conduit Issuers

16

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

7.00%

8.00%19

98

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

30 YR UST Average 30 YR MMD Average 30 YR UST 30 YR MMD

Long Term Rates – All-Time Low

17

Source: TM3, Treasury.gov as of October 18, 2019

Previous all-time low New all-time low

30-Year Municipal Market Data & 30-Year US Treasury Rates – Past 20 Years

Fund Flow is the net of all cash inflows and outflows going in and out of various financial assets.

Municipal bond inflows and outflows are essentially a representation of demand for fixed-income municipal securities.

MMD, a product of supply and demand, correlates closely with inflows and outflows.

So far, 2019 has been historically one-sided, with all but one week showing significantly positive inflows. Extraordinary demand for bonds and correspondingly low MMD yields makes the current market extremely appealing municipal bond issuances.

Municipal Bond Inflows & Outflows

18

3 Year Historical Inflows & Outflows

Source: TM3, Lipper as of October 18, 2019

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

4.00%

-5.0

-4.0

-3.0

-2.0

-1.0

0.0

1.0

2.0

3.0

4.0

5/1

1/20

166/

1/2

016

6/2

2/20

167/

13/

2016

8/3

/201

68/

24/

2016

9/1

4/20

1610

/5/2

016

10/2

6/20

1611

/16/

2016

12/7

/201

612

/28/

2016

1/1

8/20

172/

8/2

017

3/1

/201

73/

22/

2017

4/1

2/20

175/

3/2

017

5/2

4/20

176/

14/

2017

7/5

/201

77/

26/

2017

8/1

6/20

179/

6/2

017

9/2

7/20

1710

/18/

2017

11/8

/201

711

/29/

2017

12/2

0/20

171/

10/

2018

1/3

1/20

182/

21/

2018

3/1

4/20

184/

4/2

018

4/2

5/20

185/

16/

2018

6/6

/201

86/

27/

2018

7/1

8/20

188/

8/2

018

8/2

9/20

189/

19/

2018

10/1

0/20

1810

/31/

2018

11/2

1/20

1812

/12/

2018

1/2

/201

91/

23/

2019

2/1

3/20

193/

6/2

019

3/2

7/20

194/

17/

2019

5/8

/201

95/

29/

2019

6/1

9/20

197/

10/

2019

7/3

1/20

198/

21/

2019

9/1

1/20

19

$ B

illio

ns

Inflows

Outflows

30Y MMD

Investor Appetite for High Yield Munis

19

Cumulative Percentage Change in Market Value Since 2012

2019 Avg.($6.4 B)

2018 Avg.($5.4 B)

Municipal Bond Supply

Weekly Municipal Bond Issuance Volume

Source: The Bond Buyer, MarketWatch as of October 18, 2019

20

4.5

6.4

7.8

1.0 0.0 0.2

7.8

6.6

5.1

3.7

7.2 6.4

2.0

4.7 4.5 4.8

2.5

7.5

5.5

4.2 3.6 3.9

5.4 6.1

7.2

5.1

2.0

6.4

9.9

7.3

5.6

1.0

6.9 7.06.7

4.9

12.6

7.6

5.16.2

7.68.6

10.3

6.0

9.3

6.4

14

12

0

2

4

6

8

10

12

14

16

$ B

illio

ns

Wisconsin Public Finance Authority (PFA)

21

Wisconsin Legislature

22

Questions?

MIYUN CHO FELLERHOFF, Managing Director

One North Wacker Drive, Suite 2000

Chicago, IL 60606

Office: (312) 596-1532


KIMBERLY WITHERSPOON, Shareholder

1 North Main Street, 2nd Floor

Greenville, SC 29601

Office: (864) 240-3255




Charlotte, NC 28204

Office: (704) 926-2453


23

Bond Summit – South Carolina JEDA...Bond Summit – South Carolina JEDA. Discussion on High Yield Bonds. WALTER GOLDSMITH, Managing Director. 1355 Greenwood Cliff, Suite 400. Charlotte,

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