INDEPENDENT & OBJECTVE PERSPECTIVE
George K. Baum & Company is not a direct lender or credit provider, and is not affiliated with a commercial bank. We do not have an incentive to advocate for any particular financing structure. Rather, our primary focus is to offer the best advice to our clients based on their needs. We assist our clients in exploring all of their options and ultimately implement the most accurate plan of finance best suited to meet their individual goals.
Since 2000, our Firm has served as underwriter or municipal advisor for approximately 1,500 primary and secondary school bond financings totaling approximately $25.5 billion. George K. Baum & Company consistently ranks among the top 10 underwriters of negotiated public K-12 financings in several states throughout the country.
FUNDAMENTAL FINANCIAL STRATEGY & PROCESS
Our goal is to educate our clients on all of their potential financing options while balancing cost, risk and compatibility with the client's goals and philosophy toward the use of debt. In assessing an institution's options, we detail and advise clients on the pros and cons of bank financings and debt issuances sold on the basis of the client's own credit rating.
Our National Presence
CALIFORNIASince 2010, George K. Baum & Company has been involved in more than 124 general obligation ("GO") bond issues totaling approximately $2.59 billion for California public K-12 school district clients. GKB has a long history of serving school districts in Southern California, particularly Los Angeles County. Of the 79 school districts in LA County, GKB has served more than 27 on GO bond issues.
COLORADOGeorge K. Baum & Company accounts for one third of all school district underwritings in Colorado (since January 2014). Since 2008, GKB has served as underwriter on approximately 86 primary and secondary school issues totaling more than $1.99 billion.
INDIANAGeorge K. Baum & Company opened its Indiana office in June 2014 and issued more than $53.4 million for public K-12 school district clients. For calendar year 2015, GKB expects to issue nearly $230.7 million for Indiana public schools.
KANSAS & MISSOURIGeorge K. Baum & Company's Kansas City office puts major emphasis on public K-12 issuers in the states of Kansas and Missouri. Since 2000, GKB has served as underwriter and/or municipal advisor on more than 954 primary and secondary school issues with a total par amount of approximately $9.59 billion.
NEW MEXICOGeorge K. Baum & Company has had a public finance office in New Mexico spanning three decades. During this time, George K. Baum & Company's K-12 practice has been consistently ranked among the top investment firms for New Mexico school districts as underwriter and/or municipal advisor.
TEXASGeorge K. Baum & Company has been active in Texas municipal markets since 1991. We have sole-, senior- or co-managed 243 competitive or negotiated bond sales totaling more than $7.3 billion. Additionally, we have worked closely with nine municipal advisory clients, assisting them with 35 bond sales totaling approximately $24 billion. We currently have more than eight professionals serving the state of Texas located in Dallas, Austin and Houston. More than 55% of our negotiated underwriting in Texas is in the K-16 educational market.
UTAHGeorge K. Baum & Company serves as financial advisor to the majority of Utah's largest school districts. Since 2000, GKB has served as municipal advisor on more than 62 Utah school financings totaling more than $1.9 billion. The Firm has devoted significant resources toward serving Utah's K-12 issuers. Our experience and expertise has enabled us to deliver significant savings to our school district clients through strategic structuring innovations and sophisticated refinancings.
Our K-12 Finance professionals provide a wide range of services to our clients. These services include, but are not limited to, the following:
UNDERWRITING SERVICESGeorge K. Baum & Company is one of the nation's leading underwriters of municipal bonds. Our decades of experience, combined with the frequency in which we bring bond issues to market, helps our clients obtain competitive borrowing costs and some of the most attractive terms available in the market.
MUNICIPAL ADVISORY SERVICESThe synergy of local expertise and national resources is unique to George K. Baum & Company and is the foundation of our municipal advisory business. These services are significantly complemented by our underwriting experience developed while working on other transactions. It is vital for a Municipal Advisor to be in-step with the market. We believe that to be an effective Municipal Advisor for a client, a firm must maintain an active underwriting presence on other transactions. Our underwriting experience allows us to analyze all of our clients' outstanding bonds for refunding opportunities, monitor market conditions to guide the timing of our clients' bond sales and interpret market activity. This underwriting experience allows us to identify the most effective structures and sale methods available for our clients' bonds and to make other informed recommendations to our clients when engaged as a Municipal Advisor.
DIRECT PLACEMENT FINANCINGSIn assessing a client's financing options, we detail the pros, cons and risks of direct placement financings or debt issuances sold in the public markets based on the competitive nature of the proposals and a client's own credit rating. George K. Baum & Company has a frequent presence pricing bonds in the primary market and in the arrangement of direct purchases. This experience enables our clients to obtain some of the lowest borrowing costs and most attractive terms available.
DUAL TRACK FINANCING PROCESSGeorge K. Baum & Company has developed a unique "dual track" financing process to assist clients in determining the most appropriate financing structure for their offering. The dual track includes distributing a credit package to banks and rating agency(ies) for their review as part of the client's Request for Proposal ("RFP") process. George K. Baum & Company orchestrates the RFP and rating processes and prepares a comprehensive summary analysis to simplify the decision-making process. The dual track RFP process often yields extraordinary results for our clients because banks are put in a competitive situation.
FINANCIAL PROJECTIONS MODELINGWith direct input from the client, George K. Baum & Company utilizes its proprietary financial models that forecast and stress-test the client's future financial viability after incurring new, or refinancing existing, debt. The financial modeling process assists the client in developing parameters around a prudent level of debt capacity. The model is an interactive tool that can be adjusted and changed in real time, allowing for informed and efficient decisions. It also serves as the basis for conveying the client's current and future financial performance to potential financing partners.
IN-HOUSE QUANTITATIVE CAPABILITIESGeorge K. Baum & Company is at the leading edge of quantitative analysis for municipal financings. Our commitment to quantitative analysis led to the formation of a specialized quantitative finance group whose sole responsibility is to develop and implement functional and analytical tools for our clients. Our quantitative professionals do not rely on any outside resources. All of the work performed for our clients is done in-house. Our significant experience in the area of debt structuring includes all aspects of refunding and cash flow modeling, such as crossovers, invested sinking funds and transferred proceeds. Our quantitative professionals specialize in performing a variety of important tasks, including;
• Bond Structuring
• Refunding Calculations & Innovations
• Pro Forma Analysis
• Escrow Restructurings
• Cash Flow Analysis
NEW PROJECT FINANCINGGeorge K. Baum & Company assists our clients with a wide variety of debt financing for acquiring or expanding existing facilities or building new ones using publicly issued bonds or direct purchases. Our expertise in both the public markets and the direct purchase markets enables our clients to analyze the full range of financing possibilities.
RATING AGENCY PRESENTATIONSGeorge K. Baum & Company has developed proprietary methodologies for working with rating agencies to secure first-time, or obtain renewed, ratings for our borrowers. George K. Baum & Company devotes extensive resources to the development of each credit package with the intention of exceeding the expectations of the client and rating agencies.