Media Contact:
Jana Strange
727.567.2824
raymondjames.com/news-and-media
November 12, 2013

Raymond James Public Finance transactions win in select Bond Buyer “Deal Of The Year” categories

ST. PETERSBURG, Fla. – The Bond Buyer, a national publication covering the municipal finance industry, recognized two transactions completed by Raymond James as 2013 Deals of the Year.

The financial restructuring of New Jersey’s medical education system won Healthcare Financing Deal of the Year. More than $1 billion of bonds were issued by the reorganized universities and healthcare institutions, restructuring and reallocating $668 million of the previously issued bonds. The deal is a result of the New Jersey Medical and Health Sciences Education Restructuring Act, which mandated restructuring medical and health sciences education and research in the state. Raymond James worked with the New Jersey Department of the Treasury and two other investment banks to complete the complex transaction.

Highlights of the transaction include:

  • The financing of the largest higher education merger in U.S. history in a complex reallocation of assets among three higher education and healthcare institutions.
  • The creation of a Level 1 Trauma Center hospital as an independent, standalone entity of the state.
  • The transformation of Rowan University into the state’s second comprehensive public research university, and one of only two universities in the nation to offer both M.D. and O.D. degree programs. Raymond James served as senior managing underwriter for the Camden County Improvement Authority.

The issuance of $200 million of catastrophe bonds to address storm surge insurance needs for the New York Metropolitan Transportation Authority (MTA) was named Non-Traditional Financing Deal of the Year. After Superstorm Sandy caused more than $4.9 billion of storm surge related losses in October 2012, the MTA’s reinsurance capacity was limited and its premiums essentially doubled. Traditionally a risk-management tool for private and state-sponsored insurance providers, these catastrophe bonds were sold to qualified institutional investors and offered MTA additional reinsurance capacity at more cost-effective levels. 

The catastrophe bonds collateralized three years of reinsurance from a newly formed Bermudan special-purpose reinsurer. The catastrophe bond alternative locked in three years of reinsurance at today’s low-interest rates and provided MTA with significant leverage to negotiate pricing and terms for next year’s traditional reinsurance program. Raymond James acted as financial advisor to MTA’s captive insurance subsidiary, First Mutual Transportation Assurance Company, the sponsor of the catastrophe bonds.

Unique features of this transaction include:

  • The catastrophe bond structure was the first by a traditional U.S. municipal entity to insure its own assets.
  • The first catastrophe bond issued to protect solely against storm surge.
  • The first storm surge-only issue rated by Standard & Poor’s.

“These awards are representative of the consistent, result-oriented banking exhibited by the dedicated professionals across our entire Public Finance team,” said Rob Baird, senior managing director and head of Public Finance/Debt Investment Banking at Raymond James. “Being recognized by the leading publication in our industry is an honor. I’m proud of the work done by our bankers to understand the complex needs of our clients, and of their ability to build creative and innovative solutions for our clients’ unique challenges.”

The firm, consistently ranked a top 10 national underwriter of municipal bonds, will be honored at an awards ceremony on December 5 in New York City at which time The Bond Buyer will announce the Deal of the Year award winner from the eight deal category winners. All deals closed between Oct. 1, 2012 and Sept. 30, 2013 were eligible for nomination.

About Raymond James Financial, Inc.
Raymond James Financial, Inc. (“RJF” or the “Company”) is a leading diversified financial services company headquartered in St. Petersburg, Florida providing private client, capital markets, asset management, banking and other services to individuals, corporations and municipalities predominantly in the United States and Canada. Its principal wholly owned subsidiaries include Raymond James & Associates, Inc., Raymond James Financial Services, Inc., Raymond James Financial Services Advisors, Inc., Raymond James Ltd., Eagle Asset Management, Inc., and Raymond James Bank, N.A. The Company has more than 6,200 financial advisors serving in excess of 2.5 million client accounts in more than 2,500 locations. Total client assets are approximately $486 billion. Established in 1962 and public since 1983, the Company has been listed on the New York Stock Exchange since 1986 under the symbol “RJF”. Additional information is available at www.raymondjames.com.

Forward-Looking Statements
Certain statements made in this press release may constitute “forward-looking statements” under the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning future strategic objectives, business prospects, anticipated savings, financial results (including expenses, earnings, liquidity, cash flow and capital expenditures), industry or market conditions, demand for and pricing of our products, acquisitions and divestitures, anticipated results of litigation and regulatory developments or general economic conditions. In addition, words such as “believes,” “expects,” “anticipates,” “intends,” “plans,” “estimates,” “projects,” “forecasts,” and future or conditional verbs such as “will,” “may,” “could,” “should,” and “would,” as well as any other statement that necessarily depends on future events, are intended to identify forward-looking statements. Forward-looking statements are not guarantees, and they involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from those expressed in the forward-looking statements. We caution investors not to rely unduly on any forward-looking statements and urge you to carefully consider the risks described in our filings with the Securities and Exchange Commission from time to time, including our most recent Annual Report on Form 10-K, which is available on www.raymondjames.com and the SEC’s website at www.sec.gov. We expressly disclaim any obligation to update any forward-looking statement in the event it later turns out to be inaccurate, whether as a result of new information, future events, or otherwise.