ATLANTA -- The Dade County (Fla.) Board of Commissioners late on Tuesday reversed its selection of much of the management team for two up-coming aviation bond issues.
The board revised many of the choices it made Oct. 20 for co-senior managers, senior co-managers, and co-managers for $200 million of new-money bonds and $147 million of refunding bonds. The action, however, did not affect the earlier selection of senior manager for either deal: Goldman, Sachs & Co. remained the bookrunner for the newmoney bonds and PaineWebber Inc. is still the lead for the refunding issue.
The board's turnabout came after commission chairman Arthur Teale pushed for a motion to revert to the manager selections advocated by county manager Joaquin G. Avino before the Oct. 20 meeting. The managers chosen Tuesday replace the group recommended by the commission's finance committee, which is headed by commissioner James Burke.
"I would describe what happened as the result of a philosophical difference within the board," Edward Marquez, the county's finance director, said in a telephone interview. "The commissioners agreed that Dade would be better perceived if it approved the county manager's approach."
Marquez said the 13-member commission voted 11 to 2 in favor of revising the management team, with Burke and commissioner Natacha Millan casting the dissenting votes.
Marquez said that he did not expect any further revision of Tuesday's choices. Noting that the commission approved a bond award resolution for the refunding issue at the meeting, the finance official said he expects Dade County to issue the bonds "as soon as possible."
"I think the meeting Tuesday was the end of it," he said about the commissioners' discussion on underwriter selection.
Burke and Millan could not be reached for comment.
Conspicuous among the new choices was Merrill Lynch & Co. In the Tuesday revisions, Merrill was named senior co-manager for the refunding bond issue, replacing Artemis Capital Group Inc. and a joint venture of Bear, Steams & Co.; First Union Securities; and Jackson Securities.
Despite being top-ranked by the county's financial staff for both deals, Merrill had not been given any role in the underwriting in the Oct. 20 choices.
For the new-money transaction, the co-senior manager will now be Prudential Securities, replacing two joint ventures: CS First Boston and Pryor McClendon, Counts & Co.; and Smith Mitchell Investment Group and Howard Gary & Co.
For the refunding bonds, the revised choice of co-senior managers was a joint venture of Bear Stearns, First Union Securities, and Jackson Securities. The group replaced Douglas James Securities Inc. and FAIC Securities.
Douglas James and FAIC were tapped to be senior co-managers on the new-money deal, replacing Prudential Securities. Donaldson, Lufkin & Jenrette Securities Corp., chosen as one of the deal's senior co-managers on Oct. 20, remained in place.
The revised list of co-managers for the new-money bonds chosen Tuesday were: Emax Securities, Guzman & Co., and SouthWestern Capital. These dealers were also chosen on Oct. 20, along with Grigsby Brandford & Co. and Estrada Hinojosa & Co. of Dallas. Grigsby Brandford and Estrada, however, were dropped from the revised list.
For the refunding bonds, the co-managers from the Oct. 20 selections remained in place: Pryor McClendon, American Government Certificates & Funds Corp., Muriel Siebert & Co., Argyle Securities Corp., and LM Securities Capital Co.
Along with the revised choices came new bond allocations for participating underwriters.
On the new-money deal, the senior manager will now receive up to 37% of the issue, the co-senior manager up to 18%, the three senior co-managers up to 10% apiece, and the three co-managers up to 5% apiece. The Oct. 20 allocations had been 29% for the senior manager, 15% apiece for the two co-senior managers, 8% each for the two senior co-managers, and 5% apiece for five co-managers.
For the refunding issue, the senior manager will now receive 40%, the co-senior manager 20%, the senior co-manager 15%, and the five co-managers 5% apiece. The earlier allocation had directed 29% to the senior manager, 15% to the two co-senior managers, 8% apiece to two senior co-managers, and 5% to the five co-managers.