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Minority-owned law firm lands big bond deal

By: dmc-admin//July 20, 2009//

Minority-owned law firm lands big bond deal

By: dmc-admin//July 20, 2009//

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Public finance transactions have been a part of Gonzalez Saggio & Harlan LLP’s practice for more than a dozen years. But this spring, the Milwaukee-based minority-owned law firm served as sole underwriter’s counsel for the sale of $1.52 billion in general appropriation bonds.

The transaction — a major one by Wisconsin standards — is believed to be the largest ever with a minority-owned firm serving as sole underwriter.

Jennifer Pflug Murphy of the firm’s Milwaukee office served as the lead lawyer, working with C. Willis Ritter. GSH served as underwriter’s counsel for a syndicate led by Barclay’s Capital Inc.

Murphy explained that the transaction involved using appropriation bonds to defease tobacco bonds that had been issued in 2002. The goal was to address the state’s budget deficit.

“It was essentially a financial reorganization,” Murphy explained. “They were looking to free up money at the state level. It’s not uncommon to use appropriation bonds in that way.”

She noted that the firm has done similar work for other governmental bodies.

Frank Hoadley, capital finance director for the state, said this is one of a handful of public finance transactions during the past decade involving more than $1 billion.

“Any time you get north of a billion dollars, it’s a big deal,” Hoadley said.

Murphy said that one of the biggest challenges was the tight turnaround for handling the deal. The firm began work in February and completed the deal in April 8.

“That was definitely a challenging timetable to work on,” Murphy said.

The firm has done a lot to get itself ready to handle such a large deal, she said. They started out working on smaller deals for various public entities and local municipalities, then began handling more and more state-level deals.

“We have worked with the state on many different deals before this one, so there was familiarity with our work,” Murphy said.

“It’s easier for the state if they select an underwriter’s counsel who is familiar with the state and its procedures,” Hoadley explained. “That way, you don’t have to reinvent the wheel. Gonzalez has that familiarity.”

Although this is the largest deal where GSH has served as sole underwriter’s counsel, the firm’s largest deal ever took place last year, when it served as co-counsel for the issuance of $2.2 billion worth of state of Connecticut general obligation bonds. Overall last year, the firm advised on more than $9 billion in public finance transactions.

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