Commission Selects New Managing Underwriters

KANSAS CITY, Missouri -- The Missouri Housing Development Commission named George K. Baum & Company of Kansas City and USB/Paine Webber, New York, N.Y., as co-senior managing underwriters for their single family and multifamily revenue bonds in their monthly meeting April 27 in Jefferson City, Missouri.

The Commission also named as co-managers of the underwriting team:

Edward Jones, St. Louis
Fahnestock & Company, Kansas City
M.R. Beal & Company, New York
Stern Brothers & Company, St. Louis

The underwriting team was selected through a competitive proposal process that attracted submissions from 23 investment-banking firms.  MHDC’s managing underwriters structure, underwrite, sell and distribute single family and multifamily revenue bonds.

The managing underwriters will be responsible for all single family and multifamily mortgage revenue bonds issued via negotiated public sale for the next three years. The Co-Senior Managers will alternate roles as book-runner.  It is expected that the first transaction handled by the underwriting team will be an estimated $75 million sale of single family Mortgage Revenue Bonds in June.  MHDC had a $100 million sale of single-family bonds earlier in the year.

MHDC will continue funding its Homeownership Loan Program by issuing parity bonds under its Master Indenture adopted in June 1995.  This Master Indenture imposes an S&P ‘AAA’ rating requirement on all bonds issued under that Indenture. MHDC intends to continue meeting this rating requirement by purchasing loan pools securitized by GNMA, FNMA or FHLMC.

MHDC also expects to issue, from time to time, tax exempt and/or taxable bonds to fund mortgage loans on affordable rental apartment projects.

###