Smith's High Yield Municipal Bond Conference

Agenda

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Monday, October 28, 2024

6:00 - 9:00 pm

WELCOME RECEPTION

Speakers, sponsors and attendees will gather together prior to the conference sessions begin on Tuesday.

Sponsored by:

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Tuesday, October 29, 2024

8:00 am

CONFERENCE REGISTRATION

CONTINENTAL BREAKFAST

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8:30 am

WELCOME

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8:35 am

DOES U.S. ECONOMIC GROWTH CONTINUE?

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Scott MacDonald, Ph.D

Chief Economist

Smith's Research & Gradings

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8:45 am

FINANCING THE FUTURE WITH TAX-FREE MUNICIPAL BONDS

Terence Smith

CEO  

Smith's Research & Gradings

Maria Lehman

U.S. Infrastructure Market Leader — GHD  

ASCE Past President, Co-Chair National Infrastructure Advisory Council to the President (NIAC)

Damon Burns

Chief Executive Officer

Finance New Orleans

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9:30 am

THE FUTURE OF CHARTER SCHOOLS: RISKS, REMEDIES AND RESILIENCE

Panelists will explore the future landscape of charter schools, focusing on the evolving rights and remedies for bondholders and the correlations between risk factors and charter distress. What happens at pivotal moments when charters face revocation or renewal failure and what are the implications for stakeholders and communities? The discussion will include innovative strategies and regulatory frameworks to strengthen charter school stability and investor confidence. Join experts as they navigate the complex intersection of financial governance and educational outcomes in the charter school sector.

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Margot Kleinman

Director of Research

Nuveen Asset Management

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Rachel Repke‍

Vice President, Analyst

BlackRock

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Richard Moreno

President

Building Hope Services, LLC

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Emily Wadhwani

Senior Director and Sector Lead, Education and Nonprofit Institutions

Fitch Ratings

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10:15 am

COFFEE NETWORKING BREAK

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10:30 am

SUNSHINE STATE'S BRIGHTLINE EAST AND VIVA LAS VEGAS BRIGHTLINE WEST

The Brightline East investment grade financing (which included insured bonds) was a landmark financing for a capital plan started in 2015 and 2017. Using Brightline Florida's 235-mile passenger rail line as its blueprint, the privately held Brightline West has its sights set on connecting Southern California to Las Vegas. Construction on the 218-mile high-speed rail system is underway and is based on Brightline's vision to connect city pairs that are too short to fly and too far to drive. And, it’s just in time because the ASCE’s Nevada Infrastructure Report Card shows the airports in Nevada are reaching maximum capacity (again).  Siemens was able to build and operate the next generation of innovative high-speed trainsets, which eliminates a lot of the technical risk associated with the project. Join us as we examine the financing structures, demand drivers and Brightline's vision for the future.

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Zach Solomon

Executive Director, Co-Head of Public Finance Investment Banking

Morgan Stanley

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Alexandra Levin

SVP, Capital Formation & Investor Relations

Brightline

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James Schwartz, CFA

Managing Director, Head of Municipal Credit Research

BlackRock

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Sam Nakhleh

Director, Infrastructure Finance, The Americas

Assured Guaranty

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11:30 am

NAVIGATING FINANCIAL CHALLENGES IN HIGHER EDUCATION

Navigate the diverging credit landscapes of larger institutions versus smaller private colleges. With a demographic downturn and escalating costs, the debate over higher education's value proposition intensifies. Panelists will explore bond covenant violations stemming from sector distress and critical challenges facing the sector. Engage in a forward-looking discussion on higher education financing and evolving economic realities. 

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Miyoko Sato - Moderator

Member

Chair, Public Finance, Real Estate, Bankruptcy, and Environmental Division

Mintz

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Colin Shaw, CFA

Executive Director

Morgan Stanley Investment Management

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Jessica Wood

Managing Director and Sector Leader, Education

S&P Global Ratings

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Mark Podgainy

Managing Director

Getzler Henrich & Associates

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Kenneth Dotson

Vice President, Special Accounts Consultant

Computershare Corporate Trust

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12:15 pm

LUNCHEON

Sponsored by:

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The Phoenix Award Presentation

— Recognizing Contributions and Achievements in the High Yield Sector

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‍                                                                                                               2024 Recipient:

                                                                                                         Hector Negroni

                                                                                                         Founder & CEO

                                                                                                         Foundation Credit

Individual Phoenix Award Pedestal

Sponsored by:

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1:30 pm

DOWN THE RABBIT HOLE OF CCRC WORKOUTS

Curiouser and Curiouser...Down the rabbit hole of CCRC workouts. Everything you thought you knew about CCRC secured lenders is being challenged and often re-written by the bankruptcy courts and the bankruptcy process. A look behind the scenes at what actually transpires in bankruptcy court and what issues should be addressed and pre-empted during the investor acquisition credit analysis. It's a topsy turvy world.

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Mary Jane Minier, CPA

Senior Analyst

Head of Opportunistic Credit Strategy

Invesco Ltd.

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Dan Bleck

Member

Mintz

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Chad Shandler

Senior Managing Director

Co-Leader of Healthcare Restructuring

FTI Consulting

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Michael Slade

Senior Vice President

UMB Bank

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2:15 pm

HOW DEALS EVOLVE FROM CONCEPTION TO EXECUTION IN THE PROJECT FINANCE SPACE

The municipal securities market is home to many greenfield projects that have limited sources of funds and need to deliver a completed project and recurring revenue stream. This can be challenging given construction, permitting, and financial ramp of net income that should approximate the obligor’s projections in the near term as well as over the life of the project. Given these challenges, the ingredients to a successful financing include: equity, liquidity, documentation that supports the credit, and a seasoned management team that together can manage challenges that may arise from a host of issues known and unknown. Significant parties to development, typically include a recognized management consultant to objectively support managements projections,  a responsible construction company and owner’s rep as well as seasoned counsel representing various parties.   This panel will showcase project finance transactions and incorporate views from purchaser's counsel and project sponsors to discuss best execution in 2024 and beyond. 

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Yaffa Rattner - Moderator

Senior Managing Director

Head of Municipal Credit

HilltopSecurities

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Jon Novitsky

Chief Executive Officer

Max Midstream

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Jeff Schumaker

President

American Tire Works

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William C. Rhodes

Partner

Ballard Spahr LLP

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3:00 pm

MILLION AIR IS TAKING OFF WITH HIGH YIELD BONDS

Million Air is in the fixed base operation (FBO) business, responsible for 36 corporate-owned and license-owned FBOs at various airports.  FBOs provide aircraft fueling, parking, hangaring and other services for aircraft, pilots, and passengers. The Million Air license system constitutes the third largest FBO chain and the largest licensed chain in the United States.  After an introduction by Raymond James banker, D.J. Mehigan, this session will be led by Roger Woolsey, Million Air CEO, who will discuss the firm’s growth and its current bond offering (its third publicly sold bond issue) for facilities in Austin, TX and Marathon, FL.

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D.J Mehigan‍

Managing Director

Raymond James

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Roger Woolsey‍

Chief Executive Officer

Million Air

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3:20 pm

WORKFORCE HOUSING FROM THE GROUND UP

This panel will discuss what works in Workforce Housing. The High-Yield Housing sector remains open, but is challenged by the unprecedented rising interest rates over the past year. Demand for affordable housing has sky rocketed even higher due to the lack of new affordable multifamily housing construction during the past five years. Meaningful credit distinctions can be made among different workforce structures. In addition, tax credit structures, documents and standards will be topics of conversation. 

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Helen Hough Feinberg - Moderator

Managing Director

Manager - Housing Sector

RBC Capital Markets

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Ian Parker

Managing Director

RBC Capital Markets

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John Stoecker

Financial Advisor

California Municipal Finance Authority

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Richard Schwam, CFA

High Yield Research Analyst — Municipal Credit

Alliance Bernstein

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4:05 pm

DAY ONE ROUNDTABLE

Join our high-yield municipal bond roundtable for an in-depth look at current market dynamics. This group of seasoned municipal bond professionals will discuss the impact of shifting interest rates and identify sectors facing significant challenges. Explore how recent trends and economic factors are shaping the high-yield municipal bond landscape. Panelists will share insights on distressed sectors and their implications for investors. Gain a forward-looking perspective on the market’s trajectory and what to anticipate for 2025. This discussion promises insightful knowledge, strategic foresight and an entertaining discussion as we navigate the evolving landscape of high-yield municipal bonds.

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Mark Whitaker, CFA - Moderator

Senior Managing Director and Head of Municipal Research

Mesirow

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Jon Schotz,

Co-Managing Partner

Co-Portfolio Manager

Saybrook Fund Advisors, LLC

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Jim Schwartz, CFA

Managing Director

Head of Municipal Credit Research

BlackRock

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Bryce Pickering

Head of High Yield Municipal Credit Trading

First Eagle Investments

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Hector Negroni

Founder and CEO

Foundation Credit

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5:00 pm

MUNICIPAL BONDS ON THE ROCKS COCKTAIL HOUR

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Sponsored by:

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6:30 pm

Smith's High Yield Conference Dinner

 Location:       Prime - An American Kitchen & Bar

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‍Featuring: The Wizard of Wall Street and the Magic of High Yield Municipal Bonds

                         Rian Lehman of Lehman Magic

— Acts of Prestidigitation and Legerdemain

— Dazzling Illusions and Mind-Bending Tricks

— Magic at its Finest!

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‍Sponsored By:

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Wednesday, October 30, 2024

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7:30 am

CONFERENCE REGISTRATION

CONTINENTAL BREAKFAST

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8:15 am

OPENING REMARKS

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8:30 am

REFLECTIONS OF A HIGH YIELD MUNI ANALYST

It’s not the stuff you don’t know that gets municipal bonds into trouble, but it’s the stuff you know that just isn’t so. It’s not “did I miss a covenant”, but “did I believe in the story too much/wrongfully”. It would not make a difference if we had the best covenants and protections in place if the credit story does not play out. The question that we need to ask ourselves is  “Did we put too much faith in the projections and feasibility studies?”  In failed deals, it may help to conduct a post-mortem to understand how we could have done a better job at identifying the real risks in a transaction. The panelists will share some of their recent experiences to highlight the theme and the point that while credit fundamentals and structure both matter, fundamentals rule!

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‍Prakash Vadlamani

Portfolio Manager and Senior Research Analyst

Amundi US

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Andrew Cooper

Senior High Yield Municipal Credit Analyst

Vanguard

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Ryan McDonald, CFA

Managing Director

BlackRock

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Neene Jenkins

Executive Vice President, Head of Municipal Research

JP Morgan Asset Management

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9:15 am

HOTEL AND CONVENTION CENTER FINANCINGS

Hotel, Shopping Mall and Convention Centers were all negatively impacted during the COVID-19 pandemic, with malls also falling victim to growing online shopping trends. It's taken years for hotels and convention centers to return to "normal" levels and developers have had to creatively reinvent shopping malls. Panelists will discuss the variety of factors impacting projects and how financial risks can be mitigated.

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‍David Rodriguez, CFA

Managing Director

Senior Research Analyst

Saybrook Fund Advisors

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Chip Wilson

Managing Partner

Dakota Ridge Real Estate Advisors

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Tom Weyl

Head of Municipal Solutions

Celadon Capital Partners

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9:45 am

COFFEE BREAK

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10:00 am

HEALTHCARE BONDS: 

CREATIVE FINANCINGS TO BRIDGE GAPS BETWEEN FUNDING AND FINANCIAL HEALTH

The Healthcare sector has many facilities with life support from Federal funding that is running out, reimbursement rates that are paralyzed, and costs that have soaring temperatures. The panel will look at the rights and remedies available to bondholders. You will learn how the cure could be worse than the cold and the hard ground may prove to be of cold comfort.  These physicians of high yield bond finance keep true to the oath of doing no harm when repairing broken covenants.

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Soren Reynertson

Managing Director

GLC Advisors & Co.

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Alex Geier

Managing Director

GLC Advisors & Co.

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Kristin Going

Partner

McDermott Will & Emery

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Richard Szalkowski

Managing Director

Municipal Desk Analyst

Raymond James

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Charles Hachten

Senior Research Analyst

Nuveen Asset Management

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11:00 am

LESSONS LEARNED FROM PUERTO RICO

The Commonwealth of Puerto Rico was rated double-A before rating agencies downgraded the debt to non-investment grade in 2014. Puerto Rico defaulted on nearly $70 bln. of outstanding municipal debt in 2015. In 2022, Puerto Rico “emerged from bankruptcy”, but it still has not posted audited financial statements and attempts by Puerto Rico’s Congressional finance committees to reconcile financial plans to the government’s recorded revenues have failed. Bondholder on Bondholder violence has erupted in the process. There is no shame and in a dark world then all cats are black.

Then, may be, the U.S. First Court of Appeals made a ruling this past Spring that shines like a good deed in a very dark garden.  Bondholder rights were affirmed. Judicial caprice was reigned in. And, administrative excess was capped without proper legal authority. US District Court Judge Laura Taylor Swain extended for an additional 30 days the litigation stay through Oct. 8 and ordered the parties to meet during that time, according to a court filing last Thursday.

You don’t want to miss the biggest highlight of this year’s municipal high yield conference.

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Ian Rogow - Moderator

Director

Co-Head Municipal Bond Research

BofA Securities

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Hector Negroni

Founder and CEO

Foundation Credit

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Justin Peterson

Managing Partner

DCI Group

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Laura Appleby

Partner

Faegre Drinker

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Jude Arena

Managing Director, Head of Municipal Trading

Bank of America

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12:00 pm

CONFERENCE ADJOURNS

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