Syndicates
to sell $1.5 Billion in
General Obligation (GO) Bonds This Month
New York City Comptroller William C. Thompson, Jr. today announced
the selection of new underwriting syndicates (see attached table)
for bonds issued by the City of New York (GO), the New York City
Transitional Finance Authority (TFA), the New York City Municipal
Water Finance Authority and TSASC (the Tobacco Settlement Asset
Securitization Corporation).
The new teams were selected pursuant to a Request for Proposals
(RFP) that was solicited jointly with the Office of Management and
Budget (OMB). The size and volume of the City's financing programs
requires a combination of firms that can reach a broad array of
investors.
"The City will rely heavily on each firm to generate ideas
of how to structure and distribute our bonds at the lowest possible
cost to the City," said Comptroller Thompson. "The teams
selected for each of the credits offer strong credentials and vast
experience in the municipal markets to the City. We will benefit
greatly from the expertise, talent and creativity that these firms
bring to the process."
The syndicates consist of senior managers, senior co-managers,
and co-managers. The performance of the firms in each of these brackets
will be evaluated periodically. Firms may be elevated or demoted
based on performance. Three senior co-manager firms have been given
an opportunity to compete as book-running senior manager for smaller
negotiated transactions on selected credits. They are: M.R.Beal
for GO, Siebert Brandford Shank & Co. for New York Water and
Ramirez & Co. for the TFA. Several firms have been elevated
from the selling group to the co-manager brackets based on their
written proposals and past performance.
The last time the City solicited for new underwriting teams was
in 1997 - except for the creation of TSASC in 1999.
~~~~~~~~~~~~~~~
Along with the underwriting teams, Comptroller Thompson announced
the sale of approximately $1 Billion in General Obligation (GO)
Refunding Bonds and $500 million in new money bonds scheduled for
Tuesday, May 21, 2002. The retail order period for the Fiscal 2002
Series D bonds will begin on Friday, May 17. Institutional pricing
will take place on May 21, with Salomon Smith Barney serving as
book-running senior manager. Morgan Stanley, Bear, Stearns and UBS
PaineWebber will serve as co-senior managers. The deal is expected
to close on or about June 4.
The remainder of the forward calendar, as anticipated, for each
of the issuers, is listed below.
General Obligation
There will be an additional G.O. refunding of approximately $1 billion
this summer, with Morgan Stanley serving as book-running senior
manager. The rotation for subsequent financings, when the City decides
to utilize the rotation, will begin with Bear, Stearns & Co.,
followed by UBS PaineWebber Inc., Salomon Smith Barney and Morgan
Stanley.
Transitional Finance Authority
There will be two TFA refundings of $750 million to $1 billion each
this summer. It is expected that Lehman Brothers will serve as book-running
senior manager. The first of these financings is expected to occur
in June 2002. The TFA also intends to sell up to $1.5 billion in
variable-rate New York City Recovery Bonds in July 2002. The rotation
for subsequent financings, when the TFA decides to utilize the rotation,
will begin with J.P. Morgan followed by Merrill Lynch & Co.,
Morgan Stanley and Lehman Brothers. The assignments are subject
to approval by the Board of the TFA.
New York Water Municipal Finance Authority
There will be a $300 million NYW new money issuance this summer.
It is expected that UBS PaineWebber will serve as book-running senior
manager. The rotation for subsequent financings, when NYW decides
to utilize the rotation, will begin with Merrill Lynch & Co.,
Inc. followed by Goldman Sachs & Co., First Albany Corporation
and UBS PaineWebber. The assignments are subject to approval by
the Board of the NYWMFA.
TSASC, Inc.
There will be a $600 million TSASC, Inc. new money issuance this
summer. It is expected that Bear, Stearns & Co. will serve as
book-running senior manager. The rotation for subsequent financings,
when TSASC, Inc. decides to utilize the rotation, will begin with
J.P. Morgan followed by Salomon Smith Barney and Bear, Stearns &
Co. The assignments are subject to approval by the Board of the
TSASC.
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Underwriting Selection
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As Announced 5/13/2002
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NYC GO
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NYW
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TFA
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TSASC
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Senior
Managers:
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Senior Managers:
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Senior
Managers:
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Senior
Managers:
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1
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Salomon Smith Barney
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1
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UBS PaineWebber Inc.
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1
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Lehman Brothers
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1
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Bear, Stearns & Co. Inc.
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2
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Morgan Stanley
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2
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Merrill Lynch & Co.
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2
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JPMorgan
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2
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JPMorgan
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3
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Bear, Stearns & Co. Inc.
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3
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Goldman, Sachs & Co.
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3
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Merrill Lynch & Co.
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3
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Salomon Smith Barney
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4
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UBS PaineWebber Inc.
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4
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First Albany Corporation
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4
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Morgan Stanley
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Senior
Co-Managers:
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Senior
Co-Managers:
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Senior
Co-Managers:
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Senior
Co-Managers:
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1
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First Albany Corporation
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1
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Bear, Stearns & Co. Inc.
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1
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Advest / Lebenthal
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1
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First Albany Corporation
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2
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Goldman, Sachs & Co.
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2
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JPMorgan
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2
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Bear, Stearns & Co. Inc.
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2
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Goldman, Sachs & Co.
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3
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JPMorgan
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3
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Lehman Brothers
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3
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First Albany Corporation
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3
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Lehman Brothers
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4
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Lehman Brothers
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4
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Morgan Stanley
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4
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Goldman, Sachs & Co.
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4
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Merrill Lynch & Co.
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5
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M.R. Beal & Company
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5
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Salomon Smith Barney
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5
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Ramirez & Co., Incorporated
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5
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Morgan Stanley
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6
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Merrill Lynch & Co.
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6
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Siebert Brandford Shank & Co.,
LLC
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6
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RBC Dain Rauscher, Inc.
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6
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RBC Dain Rauscher, Inc.
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7
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Ramirez & Co., Incorporated
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7
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Salomon Smith Barney
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7
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UBS PaineWebber Inc.
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8
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Roosevelt & Cross Incorporated
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8
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UBS PaineWebber Inc.
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Co-Managers:
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Co-Managers:
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Co-Managers:
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Co-Managers:
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1
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Advest / Lebenthal
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1
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A.G. Edwards & Sons, Inc.
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1
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A.G. Edwards & Sons, Inc.
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1
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ABN AMRO Financial Services, Inc.
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2
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A.G. Edwards & Sons, Inc.
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2
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CIBC World Markets
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2
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CIBC World Markets
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2
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Banc One Capital Markets, Inc.
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3
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Apex Pryor Securities
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3
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First American Municipals, Inc.
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3
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Commerce Capital Markets, Inc.
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3
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Capital Market Investment, LLC
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4
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CIBC World Markets
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4
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M.R. Beal & Company
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4
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Jackson Securities Inc.
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4
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CIBC World Markets
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5
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Commerce Capital Markets, Inc.
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5
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Prudential Securities
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5
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Legg Mason Wood Walker, Incorporated
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5
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Fidelity Capital Markets
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6
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Jackson Securities Inc.
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6
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Quick & Reilly, Inc.
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6
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Loop Capital Markets
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6
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Loop Capital Markets, LLC
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7
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Janney Montgomery Scott LLC
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7
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Raymond James & Associates, Inc.
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7
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Prudential Securities
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7
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M.R. Beal & Company
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8
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Legg Mason Wood Walker, Incorporated
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8
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RBC Dain Rauscher, Inc.
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8
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Quick & Reilly, Inc.
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8
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Ramirez & Co., Incorporated
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9
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Loop Capital Markets
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9
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Roosevelt & Cross Incorporated
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9
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Raymond James & Associates, Inc.
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9
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Raymond James & Associates, Inc.
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10
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Popular Securities, Inc.
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10
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Roosevelt & Cross Incorporated
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10
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Roosevelt & Cross Inc.
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11
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Prager McCarthy & Sealy, LLC
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11
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Siebert Brandford Shank & Co., LLC
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11
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Siebert Brandford Shank & Co., LLC
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12
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Prudential Securities
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12
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SWS Securities, Inc.
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13
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Raymond James & Associates, Inc.
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13
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Wachovia Securities
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14
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RBC Dain Rauscher, Inc.
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Note: Denotes Special Bracket
Senior Manager
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