Connecticut STO 2013 Series A

State of Connecticut
$600,000,000
Special Tax Obligation Bonds,
Transportation Infrastructure Purposes,
2013 Series A

Broad print and digital promotion draws strong retail participation in Connecticut sale

Siebert Brandford Shank served as book-runner for the State of Connecticut’s Special Tax Obligation (“STO”) Transportation Bonds which priced in October 2013.  This was the firm’s 10th senior-managed issuance for the State. The large syndicate included 5 co-senior managers, 14 co-managers, and 20 selling group members.

Siebert Brandford Shank took the lead in developing a rating agency presentation which demonstrated the strengths of the STO credit and allayed some existing rating agency concerns. The State was able to maintain its Aa3/AA/AA ratings.

We gave top priority to an aggressive and broad pre-marketing campaign that would get the best value for the money spent. As the preliminary official statement would be available eleven days prior to the retail pricing, we recommended an expanded market outreach to include two weekends. To remain within budget, numerous smaller tombstone ads directed investors to the State’s www.buyCtbonds.com investor website while the traditional large tombstone ads remained in certain publications such as the Hartford Courant, Connecticut Post and Hartford Business Journal. With the funds saved from using the smaller tombstone ads, Siebert Brandford Shank introduced the State to the option of sending out e-mail push advertisements through Hearst Media and Tribune Media that specifically targeted high net-worth individuals. Two emails with the subject line “An Investment in Connecticut’s Future” were sent to over 187,000 individuals one week prior to the sale date. In addition to the tombstone and e-mail advertisements, animated online banner advertisements were posted on websites such as newyorktimes.com, bondbuyer.com and ctpost.com for an entire week leading up to pricing that linked directly to the www.buyCTbonds.com website where individuals could learn more about the State’s bond transaction. We also recommended that the State provide contact information for the selling group members on the State’s website to further aid in accessing retail orders. The success of the advertising campaign became evident with the results of the retail order period—the State received more than $169 million in retail orders, over 94% of which were placed by Connecticut retail investors.

Treasurer Nappier stated the deal achieved a higher level of retail orders than any sale under the STO bonding program since its inception in 1984.