RFP

The City of Chicago (the “City”) Office of the Chief Financial Officer is seeking responses to this request for qualifications (“RFQ”) in order to establish new pools from which the City will select qualified firms to serve as senior and co-managing underwriters with respect to the issuance of certain bonds and/or notes.

This RFQ applies, but is not limited, to the following credits:

• General Obligation
• Sales Tax Securitization Corporation (“STSC”)
• O’Hare and Midway Airports
• Water and Wastewater

This solicitation does not relate to bond underwriting services for any other governmental entity, including “sister agencies” of the City. For additional information concerning City and STSC financials and related information please go to: www.chicago.gov/budget, www.cityofchicagoinvestors.com, www.salestaxsecuritizationcorporation.com, and www.emma.msrb.org.

This is a new RFQ solicitation and all firms that responded to the August 6, 2021 Underwriter RFQ must respond to this solicitation to be considered for the Pools (as hereinafter defined). 

The City intends to establish two (2) pools: a Senior Manager Pool and a Co-Manager Pool (together, the “Pools”). The City intends to establish the Pools for a period of two (2) years but may at its sole discretion choose to extend the Pools beyond such period.

However, each firm selected to the Pools will be required to provide annual updates related to each firm’s: 1) number of Chicago employees, 2) changes to firm ownership and any changes to MBE/WBE/DVE/BEPD status, as applicable, 3) Equal Employment Opportunity Commission tables, 4) current municipal finance department legal issues and rationale for why such issues do not negatively impact the City and STSC, and 5) extension of credit support to the City.

The City intends to periodically review the Pools to provide firms with the opportunity to present their qualifications to serve the City and assure the Pools reflect the needs of the City.

The acceptance of a firm into either one of the Pools does not guarantee participation in a transaction or vest the respondent with any rights with respect to the City.

I. SCOPE OF SERVICES

A. Senior Managers will be expected to provide comprehensive “book-running” services related to the structuring, marketing, selling, and underwriting of City and STSC debt. This shall include, but may not be limited to, the following:

• (a) Provide surveillance of City debt and identify opportunities in the market for the City;
• (b) Develop financing structures reflecting the City’s existing debt portfolio and long-term financial issues and policy goals;
• (c) Develop marketing and pricing strategies;
• (d) Manage the syndicate, including co-managers and selling group members, if any;
• (e) Provide relevant market and economic data, pricing views, comparable prices, and pricing proposals prior to pricing (weekly updates and calls including spread levels, pricing comparables, summaries of investor interest, etc.);
• (f) Assist the City in obtaining ratings and compiling rating agency presentations;
• (g) Provide thorough review of preliminary and final official statements (POS and OS);
• (h) Review and provide comments on other bond or related transaction documents;
• (i) Coordinate with the City and bond counsel to ensure compliance with federal tax and securities law;
• (j) Manage investor outreach and marketing, including developing investor presentations and electronic or other road show materials as needed in support of specific bond issues or in support of the City’s annual Investor Conference;
• (k) Follow City policies, either oral or written, for liability designation and retention, pricing procedures and the process of selling debt obligations;
• (l) Underwrite bonds;
• (m) Participate in meetings and conference calls with City staff, bond counsel, and other bond financing team members as needed;
• (n) Provide certifications as required by bond counsel;
• (o) Provide post-pricing support, including:
  • (1) Fulfill orders and allotments, upon approval of the City,
  • (2) Market support for underwritten bonds,
  • (3) Provide all relevant pricing information to the City, including orders (retail,member, priority), debt service schedules, rates, yields, true interest cost,information related to comparable transactions, etc.
  • (4) Provide post-pricing trading information
• (p) Support secondary market trading of City bonds; and
• (q) Provide comments on continuing disclosure undertakings

B. Co-Managers will be expected to provide services related to marketing, selling and underwriting of City and STSC debt, including, but not limited to, the following:

• (a) Participate with the senior manager in the development of marketing and pricing plans;
• (b) Market the City’s bonds;
• (c) Follow City policies, either oral or written, for liability designation, pricing procedures and the
• process of selling debt obligations;
• (d) Underwrite bonds, if necessary;
• (e) Provide certifications as required by bond counsel; and
• (f) Provide post-pricing market support for underwritten bonds.