Today, Grant Street Group unveiled its new Build America Bonds (BABs) electronic auction platform, including a unique option that allows bidders to submit their strongest All-Or-None bid by designating each maturity as either BABs or tax-exempt bonds.
Issuers using Grant Street Group's bidding platforms -- including MuniAuction® and other private label websites powered by Grant Street Group -- now have the flexibility to choose in an All-Or-None award format three methods for conducting their competitive sales of BABs:
1) Allow bids for BABs only;
2) Give underwriters the option to submit either a BABs bid or tax-exempt bid; or
3) Allow underwriters to select a combination of taxable BABs or tax-exempt bonds on a per maturity basis.
Grant Street Group's system performs the necessary calculations to convert the taxable BABs bids to factor in the 35% federal subsidy, thereby giving the issuer and financial advisor the ability to quickly compare the ultimate interest costs associated with each underwriter's bid.
Early market reception for the Build America Bonds program, launched in April 2009, has been very positive, with more than $28 billion BABs sold. "Now, with our novel bidding feature, underwriters can submit their strongest orders for each maturity, whether taxable or tax-exempt, giving issuers complete confidence they received the best overall rates for their bonds," said John Carver, Director of Auction Operations at Grant Street Group.
For more information about this or any of our auction services, please contact John McCarthy at (412) 246-1321.