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l� <br />Chairman Scurlock introduced Bond Counsel, Charles "Chuck" <br />Sieck of Rhoads & Sinon; Financial Advisor, Art Diamond of M. G. <br />Lewis; Burt L. Saunders and Frederick Pauzar of A. G. Edwards 8 <br />Sons; and Gael Penland of Raymond James S Assoc. <br />The Chairman noted that we have had a very volatile <br />situation in both the bond market and stock market in general. <br />Way back when we had an initial letter of intent on this <br />particular deal, the spread suggested at that time was $7.00. <br />What has happened in the 'last two days was almost a 48 hour <br />marathon of the people you see here working together trying to <br />find an appropriate solution to a dilemma, and he believed what <br />they have come up with can be heartily recommended to the Board <br />for acceptance. There was a question by the underwriter's <br />counsel in terms of some indemnification, but fortunately, the <br />underwriter gave in on that item, and everyone was really glad as <br />it was felt it would set a precedent in future issues. <br />Originally, it was felt we probably would place these bonds on an <br />institutional basis; right now, however, for a variety of <br />reasons, the institutions were not interested. What has been <br />settled on and will be recommended is that the spread be 8-1/4 <br />and the interest rate 6-3/80. Raymond James and A. G. Edwards <br />have been able to sell approximately 3 million of the 9 million <br />issue, which means they will be purchasing the other 6.2 million <br />and hopefully be able to start marketing those tomorrow. The <br />Chairman appreciated the underwriter's willingness to work with <br />us since it is a no -profit situation on this particular issue <br />because of the circumstances. He noted that Mr. Diamond was very <br />strong on not raising the interest rate which would have ended up <br />being a net negative to the county. Chairman Scurlock felt very <br />confident that we have a very good team here and that this is the <br />best possible situation we can have to get these bonds sold, and <br />he personally appreciated the people who have brought it about. <br />Financial Advisor Art Diamond wished to mention that at this <br />point we have yet to receive a rating from Moody's of a "MIG I". <br />81 BOOK 7 Fm -;E VS <br />LEC 198 <br />J <br />