Transcript Slide 1

presentation to
Wyoming
Pipeline Authority
August 26, 2003
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Introduction of Team Members
MARY KEATING-SCOTT -- Vice President and
Manager of George K. Baum & Company’s
Wyoming public finance operations.
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Focuses exclusively on Wyoming issuers.
Has been employed with the firm since 1984
Has served as lead banker or co-lead banker for all
Wyoming financings managed by Baum during the
past 10 years. This represents more than 80
municipal bond financings with a par amount in
excess of $694 million.
Served as an economic development specialist with
the Department of Economic
Planning and Development for the State of Wyoming.
Holds a masters degree in business administration
and a bachelors degree both from the University of
Wyoming.
GEOFF URBINA – Vice President
Formerly with UBS/PaineWebber, he served as a
finance advisor for two years before working with
the corporate cash group on the institutional fixed
income sales desk.
Currently holds Series 7, Series 63 and Series 65
certifications from the National Association of
Securities Dealers and also holds a Series 3 from
the National Futures Association.
Serves as financial advisor to the Alaska Gasline
Port Authority which is comprised of the North Slope
Borough, Fairbanks North Star Borough and City of
Valdez.
Serves as advisor to the Yukon Pacific Corporation /
CSX holder of right of way permits for a natural gas
pipe line that follows the existing Trans-Alaska oil
pipeline route from Alaska’s North Slope to the Port
of Valdez.
Since joining Baum in 2001 he has worked on a
number of financing projects with the combined
value of over $2 billion.
Holds a B.A. in business administration with a
concentration in finance and economics from
the University of Washington.
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Presentation to the
Wyoming Pipeline Authority
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JOHN URBINA -- Executive Vice President
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Has served as investment banker for $1.7 billion of
general obligation bonds for the North Slope Borough,
Alaska, and $2 billion of general obligation and mortgage
revenue bonds for the Alaska Housing Finance
Corporation.
Has served as investment banker for more than 30 years
for municipal governments throughout the Pacific
Northwest and Alaska.
Served as financial advisor on over $1.0 billion of City of
Valdez Marine Terminal Revenue Bonds issued on behalf
of British Petroleum, Conoco- Phillips and Exxon Mobil.
Advised the Alaska Legislature on natural gas line
legislation. Prepared and presented financial models to
the Alaska Legislature designed to analyze routing and
construction of a natural gas pipeline in the state of
Alaska for export of gas to domestic and foreign markets.
This included presentations to Governor Murkowski,
Senator Ted Stevens, Senator Lisa Murkowski, State of
Alaska Legislature leadership, and potential Japanese,
Korean and domestic buyers.
Holds a master’s degree in finance from the University of
Washington, and his bachelor’s degree in aerospace
engineering sciences from the University of Colorado.
MARSHALL WHITE -- Partner
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Mr. White’s practice encompasses a broad area of
public finance including service as bond counsel,
underwriters’ counsel, disclosure counsel, and
special counsel.
Prior to joining Cacheaux, Cavazos & Newton, Mr.
White practiced municipal, civil, and administrative
law in Texas for eight years and, more recently,
public finance law in Alaska and Texas. While in
Alaska, Mr. White served as bond counsel to all
state agencies, underwriters’ counsel on State of
Alaska issues, and bond counsel, underwriters’
counsel and/or special counsel on debt issuances
by many Alaska municipalities. Mr. White has
served as bond counsel to the City of Valdez,
Alaska on its Marine Terminal Revenue Bonds.
Mr. White graduated from the University of Texas
at Austin and the University of Houston Law
Center. He is a member of the State Bar of Texas,
the Alaska Bar Association, and the National
Association of Bond Lawyers.
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Wyoming Pipeline Authority
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Overview of George K. Baum & Co.
George K. Baum & Company was founded in 1928 to provide a full range of investment banking
services and products to investors, corporations and municipalities. Over our 75 year history, the firm
has developed into one of the nation’s leading underwriters of municipal securities. Our public
finance professionals provide:
• Negotiated underwritings (taxable and
tax-exempt)
• Competitive underwritings (taxable and
tax-exempt)
• Credit enhancement
• Financial advisory services
• Refundings
• Rating agency presentations
• Service plan development
• Tailored quantitative analysis
• Contract negotiations
• Remarketings
• Investment of bond proceeds
offices nationwide
PUBLIC FINANCE
Albuquerque, NM
Anchorage, AK
Atlanta, GA
Bellevue, WA
Boston, MA
Cheyenne, WY
Chicago, IL
Dallas, TX
Denver, CO
Houston, TX
Kansas City, MO
New York, NY
Palm Desert, CA
Sacramento, CA
Salt Lake City, UT
Seattle, WA
Seaside, FL
Springfield, MO
Wichita, KS
George K. Baum & Company maintains public finance
offices in 20 U.S. cities.
INSTITUTIONAL SALES
Boston, MA
Denver, CO
Kansas City, MO
New York, NY
Philadelphia, PA
TRADING DESKS
Denver, CO
Kansas City, MO
New York, NY
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Wyoming Pipeline Authority
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Commitment to Public Finance
Public finance has been and continues to be
the primary focus of George K. Baum &
Company’s operations. In fact, the majority of
Baum’s revenues are generated through our
municipal finance operations.
George K. Baum & Company’s strategy is to
provide our municipal clients—whether large
or small—with a broad array of investment
banking services. Our investment banking
professionals strive to provide clients with an
in-depth knowledge of the industry and to
create thoughtful and innovative solutions to
their financing objectives.
Consistent national rankings
George K. Baum & Company served as
senior or co-manager for more than 4,400
municipal bond issues totaling approximately
$149 billion since 1990. The firm consistently
ranks among the leading underwriters of
negotiated municipal bond issues.
Presentation to the
Wyoming Pipeline Authority
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Recent Projects
Examples of projects as senior manager or financial advisor:
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$287,225,000 – Intermountain Power Agency Power Supply Revenue Bonds, Series 2003
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$284,091,000 – Toll Road Revenue Bonds-Northwest Parkway Public Highway Authority, Series 2001
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$398,998,000 – Illinois Sports Facilities Authority (Soldier Field Project), Series 2001
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$316,255,000 – Chicago Public Building Commission, Series 1999
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$203,565,000 – Denver International Airport Project, Series 2002
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$348,000,000 – Denver Metropolitan Baseball Stadium District (Coors Field)
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$93,500,000 – City of Valdez Marine Terminal Revenue Bonds Series 2003 A (British Petroleum)
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$375,000,000 – City of Valdez Marine Terminal Revenue Bonds Series 2003 B (British Petroleum)
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$128,000,000 – City of Valdez Marine Terminal Revenue Bonds Series 2003 C (British Petroleum)
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$106,000,000 – City of Valdez Marine Terminal Revenue Bonds Series 2002 A (Conoco Phillips)
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$79,500,000 – City of Valdez Marine Terminal Revenue Bonds Series 2002 B (Conoco Phillips)
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$76,000,000 – City of Valdez Marine Terminal Revenue Bonds Series 2003 C (Conoco Phillips)
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$15,920,000 – City of Valdez Marine Terminal Revenue Bonds Series 2001(Exxon Mobil)
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$161,770,000 – City of Anchorage General Obligation Bonds Series 2003 A/B
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Wyoming Pipeline Authority
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Wyoming Presence
• Opened Wyoming office in 1983
• Strong commitment to all issuers—large and
small
• One of two firms with public finance offices in
the State
• In the past 10 years, Baum has underwritten
80 Wyoming bond issues with a total par
value of $694 million
• Instrumental in creating Wyoming School
Bond Guarantee program—provides “AAA”
rating for Wyoming school bond issues
• Largest underwriter of bonds issued by
Wyoming local governmental entities
Underwritten as senior or co-manager the following:
• $72,565,000 – Wyoming Building
Corporation Revenue Bonds
• $34,840,000 – Wyoming Municipal Power
Agency Revenue Bonds
• $17,000,000 - Laramie County Adjustable
Rate Industrial Revenue Bonds (Cheyenne
Light Fuel & Power)
• $8,500,000 – City of Green River Variable
Rate Solid Waste Disposal Revenue Bonds
(OCI Wyoming L.P.)
• $66,000,000 – Campbell County Tax-Exempt
Variable Rate Industrial Development
Revenue Bonds (Two Elk)
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Wyoming Pipeline Authority
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Experience with Pipeline Financings
Projects Financed:
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$1.7 Billion North Slope Borough General
Obligation and Refunding Bonds (1986 –
2003)
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$1.0 Billion Marine Terminal Revenue Bonds
for British Petroleum, Conoco Phillips,
Exxon Mobil
Other Work:
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Alaska Gasline Port Authority (AGPA)
Yukon Pacific Corporation (YPC)
Alaska Legislature
Alaska Natural Gasline Development
Authority (ANGDA)
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Wyoming Pipeline Authority
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Assistance with Legislation
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Met with Wyoming Pipeline Authority Board in
November 2002. Marshall White provided summary
of suggested legislative changes.
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Responded to questions from
individual legislators.
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Attended all legislative committee
meetings and responded to questions.
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Met individually with legislative
presenters and responded to
questions.
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Prepared a side-by-side summary of
legislative changes along with
explanation of changes.
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Responded to numerous requests
from Board members.
Attended meeting of Natural Gas Pipeline Authority in
November 2002 and provided summary of suggested
legislative changes.
Provided legislative assistance:
- Assisted bill sponsors, Senator Bill Hawks
and Representative Clarence Law.
- Worked with Legislative Service Office staff
attorneys on legislative changes.
- Prepared bill summary for distribution to
legislators.
Presentation to the
Wyoming Pipeline Authority
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Changes Made in 2003 Legislative Session
Legislative Changes to the Wyoming Pipeline Authority – 2003 Legislative Session
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Increased the bonding authority from $250 million to
$1 billion
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Expanded the power of the Authority to include
transmission of associated natural gas – allows
coal bed methane transmission
Allows the Authority to charge fees for the
use of the Authority’s facilities including
pipeline capacity
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Allows the Authority to conduct hearings to
obtain data, identify markets for Wyoming
natural gas, and be an advocate before
FERC
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Allows the Authority to sell bonds at
competitive or negotiated sale
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Allows the Authority to refund bonds even
if $1billion limitation is reached
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Allows the total bond amount outstanding
to be $1 billion rather than a one time use
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Allows use of net revenues to pay
administrative expenses of Authority
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Clarified that net revenues from any
project can be paid to the state treasurer
for credit to the state general fund
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Eliminated the limitation on only funding 50% project
of a project cost
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Allows the use of bond proceeds immediately after
the sale of the bonds rather than after completion of
project construction
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Extended the final maturity on bonds from 30 years
to 50 years
Allows the Authority to purchase, sell or lease
pipeline capacity
Allows the Authority to lend the bond proceeds to
other parties
Allows the Authority to issue variable or fixed rate
bonds
Presentation to the
Wyoming Pipeline Authority
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Suggested Changes to WPA in 2004 Legislative
Session
• Amend legislation to allow Authority to own pipeline in conjunction with
loaning a portion of the proceeds for conduit financing.
• Prior discussion regarding adding electrical transmission to powers.
Presentation to the
Wyoming Pipeline Authority
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