The benefits of conducting competitive sales of bonds and notes over this Internet auction web site are summarized below. Interested parties can
contact PFM to learn more about PFMauction.com.
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Feature
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Benefits
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Auction Format
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Bids can be submitted using the traditional All-Or-None (AON) method
or on a Maturity-By-Maturity basis (MBM). Dual bidding methods can increase
competition.
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Multiple Bids
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Bids are submitted using auction system whereby bids can be improved. This
fosters increased demand for an issuer's bonds.
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Bid Error Elimination
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All bid information is entered into a web-based table with strict error
control. This eliminates bid errors.
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Process Transparency
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The issuer and issuer-invited guests can observe the auction in real time, viewing all elements of
the auction process.
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Instant Bid Calculation
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Upon the end of an auction period, the results of the auction are posted
instantly to all bidders. The winning bidder is verified within seconds.
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Electronic Documents
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The Preliminary Official Statement (POS) and Notice of Sale (NOS) are
distributed electronically, at no cost to the issuer.
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Cost Reduction
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The posting of documents online coupled with electronic advertising can save
issuers thousands of dollars in issuance costs.
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Security
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No funds are transmitted over the Internet.
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Confidentiality
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Bidders must be preauthorized by the Issuer. Bidders have unique
password/ID combinations. Bidders are anonymous during the auction.
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Flexibility
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Allows a competitive sale to be held with 24 hours notice. Auction,
Electronic documents, and Auction Announcement to bidders can be set up
on the web site and distributed electronically within minutes.
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Modernization
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Allows issuer to illustrate a commitment to technology by using the latest
technology to reduce financing costs.
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