Request for Qualification for Underwriting Services

Agency:	Buncombe County
State:	North Carolina
Type of Government:	State & Local
NAICS Category:	541330 - Engineering Services 541611 - Administrative Management and General Management Consulting Services 541690 - Other Scientific and Technical Consulting Services
Posted Date:	Nov 14, 2023
Due Date:	Dec 15, 2023
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Buncombe County, North Carolina

Request for Qualifications for Underwriting Services

November 13, 2023

This Request for Qualifications (“RFQ”) is an open solicitation for investment banking firms to serve as an

Underwriter for Buncombe County, North Carolina (the “County”) Limited Obligation Bonds financings. Over the

next five years, the County anticipates financing needs of $400-$450 million, including a proposed issuance of

Limited Obligation Bonds, Series 2024A (the “2024A LOBs”) to finance various County and School related

projects totaling approximately $70- $80 million.

The intended purpose of this RFQ is to select a group of qualified firms to provide underwriting services to the

County over the next 5 years and select the Senior Managing Underwriter and Co-Managing Underwriter(s) for

the 2024A LOBs.

Davenport & Company LLC (“Davenport”), as Financial Advisor to the County, is distributing this Request for

Qualifications (“RFQ”) to interested Investment Banking Firms. We request that you submit your response to this

RFQ by 5:00 p.m. North Carolina Time on December 15, 2023. Please provide an electronic copy of your

response only (no hard copies) to the following individuals:

Ms. Melissa Moore Mr. Ron Venturella Mr. Mitch Brigulio

Finance

Director

Buncombe

County, NC

Procurement

Manager

Buncombe

County, NC

Senior

Vice President

Davenport &

Company LLC

Mr. Ty Wellford

Senior

Vice President

Davenport &

Company LLC

Mr. Clay Richards

Analyst

Davenport &

Company LLC

Please note that the County shall not be liable for any expense incurred in the preparation and presentation of

any response to this RFQ. For additional information regarding this RFQ, please contact Mitch Brigulio or Ty

Wellford.

Role of the Underwriter

The Underwriter’s role will be to work with the County, its Financial Advisor, and Bond Counsel to market the

Limited Obligation Bonds through a public offering. It is the County’s expectation that the firm selected will:

 Work with the County, its Financial Advisor and Bond Counsel to provide general bond market insight and to

assist with any tasks related to the planning for and marketing of the Limited Obligation Bonds;

 Conduct and execute the sale of the securities and provide an underwriting of the securities; and

 Other duties as specifically requested by the County, its Financial Advisor and Bond Counsel.

Member NYSE | FINRA | SIPC

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Response Requirements

To the extent possible, please provide responses to the questions in this section of the RFQ in the order that

they are presented. In formulating your responses, please be as concise as possible. Responses should be

limited to ten (10) pages (excluding cover page, requested appendix, requested excel spreadsheet and

regulatory disclosure statements).

1. Please state the name of the proposing firm. Please provide an overview of your firm including the makeup

of the sales and trading department as well as your firm’s financial condition. Indicate the number and

location of North Carolina sales offices and the size of each office. In an appendix, please include

information regarding any disciplinary actions taken by the SEC, MSRB, or any other federal or state

regulatory agency over the last ten years involving your firm or any principals assigned to this engagement.

2. Discuss your firm’s experience in serving as senior manager on negotiated tax-exempt Limited Obligation

Bond transactions, including a summary of all transactions completed since January 1, 2021 in (1) North

Carolina and (2) other markets your firm serves. Please include details concerning average takedowns,

expenses (excluding Underwriter’s Counsel) and management fees for the three (3) most recent senior

managed, negotiated tax-exempt Limited Obligation Bonds completed.

3. Please complete the following table related to Local Government Underwriting Experience (see excel file

included with RFQ distribution).

NEGOTIATED UNDERWRITING TRANSACTION SUMMARY

NATIONAL LOCAL GOVERNMENT NEGOTIATED TRANSACTIONS

Senior Manager

Co-Senior/Co-Manager

Number:

Volume:

Number:

Volume:

2021

2022

2023 YTD

TOTAL

NATIONAL LOCAL GOVERNMENT APPROPRIATION CREDIT NEGOTIATED TRANSACTIONS

Senior Manager

Co-Senior/Co-Manager

Number:

Volume:

Number:

Volume:

2021

2022

2023 YTD

TOTAL

NORTH CAROLINA LOCAL GOVERNMENT NEGOTIATED TRANSACTIONS

Senior Manager

Co-Senior/Co-Manager

Number:

Volume:

Number:

Volume:

2021

2022

2023 YTD

TOTAL

NORTH CAROLINA LIMITED OBLIGATION BOND NEGOTIATED TRANSACTIONS

Senior Manager

Co-Senior/Co-Manager

Number:

Volume:

Number:

Volume:

2021

2022

2023 YTD

TOTAL

Member NYSE | FINRA | SIPC

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4. Please identify the personnel in your firm who would be assigned to the proposed transaction and provide

resumes for each person. Identify the individual who will serve as senior day-to-day banker, technical banker

and sales/trading coordinator. Please provide the current work location for each of the professionals listed.

5. Using the excel file included with the RFQ distribution, please provide an indicative maturity-by-maturity

pricing summary for the 2024A LOBs based on the market as of close of business on December 8, 2023.

Please include coupons, reoffering yields, yields to maturity and spread to the corresponding MMD based

on the following assumptions and principal amortization schedule:

- Closing Date:

April 18, 2024

- Call Structure:

10-Year Par Call

- Credit Ratings:

- Amortization Structure:

Aa1 / AA+

Date

6/1/2025

6/1/2026

6/1/2027

6/1/2028

6/1/2029

6/1/2030

6/1/2031

Principal

3,750,000

Date

6/1/2032

6/1/2033

6/1/2034

6/1/2035

6/1/2036

6/1/2037

6/1/2038

Principal

3,750,000

Date

6/1/2039

6/1/2040

6/1/2041

6/1/2042

6/1/2043

6/1/2044

Principal

3,750,000

6. Assuming a transaction size of $75 million, please describe your firm’s desired syndicate composition in

terms of number of underwriting firms and proposed liability splits. Please also describe proposed priority

of orders and syndicate rules.

7. Please provide a brief overview of your firm’s marketing plans for the 2024A LOBs. Include an overview of

your firm’s sales/trading resources and who your firm believes will be the targeted investors for the bonds.

8. Using the excel file included with the RFQ distribution, please provide a not-to-exceed estimate of your

proposed underwriter’s discount for this transaction assuming a $75 million par amount. Detail each

component of your total spread proposal including management fee, average takedown and expenses on a

per bond and on a total dollar basis. Please identify all components of your expenses, but do not include a

fee for Underwriter’s Counsel as part of this estimate. Please indicate any fees or expenses your firm will

charge if the County determines, at any time, that moving forward with the financing is not in the County’s

best interest.

9. Please provide two firms that you would suggest as Underwriter’s Counsel. Note that Underwriter’s Counsel

will be drafting the Preliminary Official Statement. Please also provide a not-to-exceed fee estimate for

Underwriter’s Counsel.

Member NYSE | FINRA | SIPC

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10. Describe your firm’s policies and capacity regarding committing capital to underwrite projects, specifically

addressing any limitations on such commitment. Please discuss your firm’s willingness to commit to

underwrite unsold bond balances for the County’s proposed Limited Obligation Bonds and provide examples

of previous commitments your firm has made to underwrite unsold bond balances.

11. Please provide the names and contact information for at least three (3) client references for which your firm

has served in a senior manager underwriting capacity.

Buncombe County General Terms and Conditions

1. READ, REVIEW AND COMPLY: It shall be the Vendor’s responsibility to read this entire document, review all

enclosures and attachments, and any addenda thereto, and comply with all requirements specified herein,

regardless of whether appearing in these Instructions to Vendors or elsewhere in this RFQ document.

2. LATE PROPOSALS: Late proposals, regardless of cause, will not be considered, and will automatically be

disqualified from further consideration. It shall be the Vendor’s sole responsibility to ensure the timely

submission of proposals.

3. ACCEPTANCE AND REJECTION: Buncombe County reserves the right to reject any and all proposals, to waive

any informality in proposals and, unless otherwise specified by the Vendor, to accept any item in the

proposal.

4. INFORMATION AND DESCRIPTIVE LITERATURE: If required elsewhere in this proposal, each Vendor shall

submit with its proposal any sketches, descriptive literature and/or complete specifications covering the

products and Services offered. Reference to literature submitted with a previous proposal or available

elsewhere will not satisfy this provision. Failure to comply with these requirements shall constitute sufficient

cause to reject a proposal without further consideration.

5. HISTORICALLY UNDERUTILIZED BUSINESSES: Buncombe County is committed to retaining Vendors from

diverse backgrounds, and it invites and encourages participation in the procurement process by businesses

owned by minorities, women, disabled, disabled business enterprises and non-profit work centers for the

blind and severely disabled. In particular, the County encourages participation by Vendors certified by the

State Office of Historically Underutilized Businesses, as well as the use of HUB-certified vendors as

subcontractors on County contracts.

6. INELIGIBLE VENDORS: As provided in G.S. 147-86.59 and G.S. 147-86.82, the following companies are

ineligible to contract with the State of North Carolina or any political subdivision of the State: a) any company

identified as engaging in investment activities in Iran, as determined by appearing on the Final Divestment

List created by the State Treasurer pursuant to G.S. 147-86.58, and b) any company identified as engaged

in a boycott of Israel as determined by appearing on the List of restricted companies created by the State

Treasurer pursuant to G.S. 147-86.81. A contract with the Buncombe County by any company identified in

a) or b) above shall be void ab initio.

Member NYSE | FINRA | SIPC

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7. CONFIDENTIAL INFORMATION: To the extent permitted by applicable statutes and rules, the County will

maintain as confidential trade secrets in its proposal that the Vendor does not wish disclosed. As a condition

to confidential treatment, each page containing trade secret information shall be identified in boldface at

the top and bottom as “CONFIDENTIAL” by the Vendor, with specific trade secret information enclosed in

boxes, marked in a distinctive color or by similar indication. Cost information shall not be deemed

confidential under any circumstances. Regardless of what a Vendor may label as a trade secret, the

determination whether it is or is not entitled to protection will be determined in accordance with G.S. 132-

1.2. Any material labeled as confidential constitutes a representation by the Vendor that it has made a

reasonable effort in good faith to determine that such material is, in fact, a trade secret under G.S. 132-1.2.

Vendors are urged and cautioned to limit the marking of information as a trade secret or as confidential so

far as is possible. If a legal action is brought to require the disclosure of any material so marked as

confidential, the County will notify Vendor of such action and allow Vendor to defend the confidential status

of its information.

8. MISCELLANEOUS: Any gender-specific pronouns used herein, whether masculine or feminine, shall be read

and construed as gender neutral, and the singular of any word or phrase shall be read to include the plural

and vice versa.

9. INFORMAL COMMENTS: Buncombe County shall not be bound by informal explanations, instructions or

information given at any time by anyone on behalf of the County during the competitive process or after

award. The County is bound only by information provided in writing in this RF and in formal Addenda issued

through IPS.

10. COST FOR PROPOSAL PREPARATION: Any costs incurred by Vendor in preparing or submitting offers are the

Vendor’s sole responsibility; Buncombe County will not reimburse any Vendor for any costs incurred or

associated with the preparation of proposals.

11. AVAILABILITY OF FUNDS: Any and all payments to the Vendor shall be dependent upon and subject to the

availability of funds to the agency for the purpose set forth in The Contract.

12. SITUS AND GOVERNING LAWS: This Contract is made under and shall be governed and construed in

accordance with the laws of the State of North Carolina, without regard to its conflict of laws rules, and within

which State all matters, whether sounding in Contract or tort or otherwise, relating to its validity, construction,

interpretation and enforcement shall be determined.

13. PAYMENT TERMS: If a payment schedule is not part of The Contract then payment terms will be Net 30 days

after receipt of a correct invoice or acceptance of goods, whichever is later.

14. NON-DISCRIMINATION: The Vendor will take necessary action to comply with all Federal and State

requirements concerning fair employment and employment of people with disabilities, and concerning the

treatment of all employees without regard to discrimination on the basis of any prohibited grounds as defined

by Federal and State law.

Member NYSE | FINRA | SIPC

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File Name	Size	Type	Date & Time Added
Request for Qualification for Underwriting Services	210 KB		11/14/2023 7:53 AM
Workbook	16 KB		11/14/2023 7:53 AM

Request for Qualification for Underwriting Services

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