How to Purchase Bonds
How to Purchase Bonds
Under no circumstances shall the information on this website constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
The information contained on this website has been included for general informational purposes only and no person should make any investment decision in reliance upon the information contained herein. The City's Bonds may not be sold, nor may an offer to buy be accepted, prior to the time an Official Statement is delivered in final form.
The City of Beverly Hills provides residents the opportunity to place orders to buy bonds before other investors. The City is committed to making bonds available to Beverly Hills residents on a first priority basis through an early order period known as the Retail Order Period ("ROP"). After the ROP has expired, the City’s bonds are offered to other investors for purchase.
Does the City give its residents first priority to purchase bonds?
- Yes. Beverly Hills residents have first priority to purchase bonds on the day of sale.
What is the ROP Process?
- The ROP for City’s bond sales typically occurs the day before the official bond pricing. Through the end of the ROP, investors can submit orders through their broker. Bonds cannot be purchased directly from the City.
- Brokers submit investors’ orders for bonds in specific amounts and maturity dates based on approximate interest rates.
- Once the bond sale is completed, usually the day after the ROP, interest rates are finalized.
- Retail investors are notified of the status of their order and the final pricing. (Note: The ability to fill individual orders depends on the amount of bonds available and the amount of orders. While there is no guarantee, orders for City residents are usually filled first. However, the City can make no guarantee as to whether an order gets filled, the amount or maturity requested, or at all.)
- Individuals should consult their broker to learn about any particular process the firm may have for participating in ROPs for the City’s bond sales.
- Before placing an order, investors must read the City’s bond prospectus (the Preliminary Official Statement) for the specific bond sale.
Who Can Participate?
- “Beverly Hills retail investors” are defined to include Beverly Hills residents as well as bank trust departments, investment advisors and money managers acting on behalf of individuals domiciled in the City of Beverly Hills. All Beverly Hills retail investors must provide zip codes for verification.
- Individuals may place orders directly with a broker, or they may have a bank trust department or investment advisor place the order on their behalf.
What are the Steps to Purchase Bonds?
Step 1 – Have a brokerage account
- You must have an account with one of the brokerage firms participating in the bond sale. Alternatively, your broker can purchase bonds on your behalf by placing an order through the senior managing underwriter. Bonds cannot be purchased directly from the City. If you do not have an account, you may open one and purchase bonds during the early order period. (If you have a brokerage account, go to Step 2.)
- Investors are encouraged to begin the New Account process well in advance of the sale. Depending on the brokerage, internal new account procedures may take some time to process. Each firm has its own requirements for opening an account.
Step 2 - Learn about the bonds
- Bonds can only be offered through a bond prospectus (Preliminary Official Statement). Download and read the Preliminary Official Statement to learn about the bonds, including their security, maturity dates, the types of projects they finance and other information you may find important to help you make an informed investment decision. This website is not an offer to sell any bonds.
- Find out the credit ratings the City of Beverly Hills’ bonds have received.
Step 3 - Place your order
- Contact the broker with whom you have an account, either online or by phone, to get more information about how to buy bonds during the early order period.
Who Can I Contact to Purchase the City’s Bonds?
- To purchase any current bond offering or to obtain a Preliminary Official Statement for a current bond offering, please contact (or have your financial representative contact) an investment professional at one of the firms listed below.
Senior Managing Underwriter:
De La Rosa & Co. - (310) 207-3616
Selling Group Firms:
- Wedbush Morgan – (310) 882-6496
- Muriel Seibert & Co., Inc. - (310) 385-5806
- UBS Securities – (310) 281-4648