The state agency that sells debt for Philadelphia yesterday named underwriters, financial advisers, and lawyers for a $100 million revenue bond sale, scheduled to take place in November.
The Pennsylvania Intergovernmental Cooperation Authority selected Smith Barney Inc. as the deal's senior manager. The authority began issuing debt about three years ago to plug Philadelphia's budget gaps and provide capital financing for the cash-strapped city.
The transaction will probably mark PICA's final bond issue to finance capital projects. The authority, however, can refund debt after Dec. 31, 1994.
In September, The Bond Buyer reported that $90 million of the issue will finance the renovation of various city buildings, including fire stations, libraries, and recreation centers. About $7 million will go into a debt service reserve fund, and other proceeds will pay for underwriting costs and fees associated with the transaction.
Moody's Investors Service rates the authority's debt Baa. Standard & Poor's Corp. rates the bonds A-minus, and Fitch Investors Service rates them BBB-plus. The bonds are secured by a 1.5% tax on salaries and net profits earned by Philadelphia residents.
The authority also named a 14-firm co-manager group: Butcher & Singer Inc.; Commonwealth Securities and Investments Inc.; Dolphin & Bradbury Inc.; Donaldson, Lufkin & Jenrette Securities Corp.; Grigsby Brandford & Co.; Jackson Securities Inc.; Raymond James & Associates Inc.; Janney Montgomery Scott Inc.; Legg Mason Wood Walker Inc.; Meridian Capital Markets; Pryor, McClendon, Counts & Co.; RRZ Public Markets Inc.; Sturdivant & Co.; A.H. Williams & Co.
The authority selected Penn Capital Advisors as its financial adviser, and the firm of Cohen, Shapiro, Polisher, Shiekrnan & Cohen as its special counsel. Two firms, Drucker & Scaccetti and Jones, Hayward & Lenzi, were appointed as the authority's accountants.