Treasurer Kennedy Successfully Negotiates Lower Bid from Salomon Smith Barney

BATON ROUGE, LA – The state will save up to $90,000 by negotiating for lower underwriters fees on a general obligation bond refunding issue, according to State Treasurer John Kennedy.

We started out with a bid of $3.85 per bond from Salomon Smith Barney, and we successfully negotiated the cost down to $3.25 per bond, said Treasurer Kennedy. This is an extremely low price for this type of work, and the savings really add up when youre working with a multi-million dollar bond issue.

Salomon Smith Barney will serve as senior manager to refinance the bond issue. Co-senior managers for the refunding will be Morgan Keegan, which has a strong Louisiana base, and M.R. Beal. Co-managers will be Stephens, Inc., which just opened an office in Baton Rouge, and Siebert Brandford Shank.

Another thing were excited about is this is the first time in the states history that two minority underwriting firms will serve together as co-senior manager and co-manager, said Treasurer Kennedy.

M.R. Beal is a minority-owned firm based in New York. Siebert Brandford Shank is an African-American and women-owned firm based in San Francisco.

Contact:
Sarah Mulhearn, Communication Director
(225) 342-0012