26082-Investment Banking and Underwriting Services RFP.pdf
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- Attached to
- Investment Banking and Underwriting Services
- Solicitation number
- 26082
- Issued by
- Anchorage Municipality, Alaska
About this file
This Request for Proposals is issued by the Alaska Energy Authority, a public corporation of the State of Alaska, seeking investment banking and underwriting services for tax-exempt revenue bond issuance and alternative financing strategies. The Authority is financing the Bradley Lake Hydroelectric Project Expansion, Alaska's largest renewable energy facility located near Homer, which will increase output by up to 50% through glacial runoff diversion and infrastructure modifications. The total project cost is $420.7 million with an expected financing need of $400 million in tax-exempt bonds, with draws scheduled from December 2026 through June 2032 according to a specified draw schedule. Proposals must be submitted by 2:00 PM Alaska Time on May 19, 2026, with the deadline for questions set at May 4, 2026, and responses to questions targeted for May 8, 2026. Selected firms may be interviewed the week of May 25, 2026, with underwriter appointment expected by May 29, 2026, and initial transaction meetings scheduled for the week of June 1, 2026. Proposals are limited to 12 pages and must include cover letters, firm qualifications, personnel assignments with identified lead bankers, financing structure recommendations assuming current interest rate environments, credit analysis including rating agency approach, marketing plans with interest rate outlooks, underwriter compensation details, and discussion of co-manager advantages and optimal team composition.
Firms must provide detailed financial modeling, total interest cost calculations, and analysis of alternative structures including deferred payment options until project operation in 2031. The Authority may also explore commercial bank financing options such as lines of credit. Proposers are prohibited from contacting Authority staff, management, or rating agencies except through designated financial advisors PFM Financial Advisors LLC in Seattle. While underwriter compensation is a evaluation factor, the Authority will consider all proposal components in making its selection, with the possibility of establishing a pool of underwriters for multiple draws. Federal tax credit eligibility is under evaluation but will not be available until after construction, necessitating interim financing regardless of credit availability. Proposals may be submitted electronically via email to designated Authority personnel or through Dropbox, by mail, or in person.
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Request for Proposals for Investment Banking and Underwriting Services
On Behalf of the
Alaska Energy Authority
Proposals Due: 2:00 PM Alaska Time on
May 19th, 2026
PURPOSE
The Alaska Energy Authority (“AEA” or the “Authority”) is seeking proposals from investment banking firms to provide underwriting services in connection with the issuance of tax-exempt revenue bonds or other financing strategies by the Authority. The Authority may choose to select a pool of underwriters from which it can draw upon based on their unique financing expertise. The
Authority is exploring several financing mechanisms, including a short-term bridge financing in concurrence with the bond issuance.
BACKGROUND
The AEA is a public corporation of the State of Alaska, created in 1976, with the mission of reducing the cost of energy for Alaskans. AEA serves as the State’s primary vehicle for owning, financing, and administering energy infrastructure, including the Bradley Lake Hydroelectric Project.
The Authority is seeking financing for an expansion of the Bradley Lake Hydroelectric Project, the largest renewable energy facility in Alaska, located near Homer. The Expansion Project will divert glacial runoff from Dixon Glacier into Bradley Lake, increasing the project's output by up to 50%, an estimated 165,000 MWh annually. This additional renewable energy generation will displace approximately 1.5 billion cubic feet of natural gas annually.
The Expansion Project includes:
o A diversion dam and intake structure at Dixon Glacier.
o A 4.7-mile-long, 14-foot diameter tunnel conveying water from the Martin River to Bradley Lake.
o Modifications to the existing Bradley Lake dam and spillway to raise the maximum operating pool level by 16 feet.
o One mile of new road construction for access to the tunnel outlet.
The total project cost is $420.7MM, with $400 million expected financing need. AEA is in the process of evaluating financing options, including tax exempt bonds, ranging from $200 million to the full $400 million. AEA also is in the process of evaluating federal tax credit eligibility; however, even if tax credits can be secured, the tax credits would not be available until after the construction period and thus interim financing will be needed.
The Authority’s financial statements are available here:
https://www.akenergyauthority.org/Who-We-Are/Newsroom/Publications-and-Resources#98523-financial-statements
Additional information about the project can be found here:
https://www.akenergyauthority.org/BLEP
PROPOSAL FORMAT AND CONTENT
Proposals are to be limited to 12 pages. Additional marketing materials, financial reports and detailed numbers will not be considered part of the 12-page limit and should be included as an appendix.
Please provide the following information in your proposal:
A. Cover letter.
B. Qualifications. A summary of the qualifications of your firm including (i) ability to contribute to the development of a comprehensive funding plan and (ii) ability to successfully sell bonds similar in size, security, and quality to the Authority’s prospective bonds.
C. Personnel. The personnel to be assigned, their location, and their background and experience with similar types of financing. Clearly describe the role and relevant experience of each person to be assigned. Please identify the individual who will be the lead banker and primary contact.
Please include the location and experience of the underwriter(s) expected to be responsible for pricing the Authority’s bonds.
D. Structure.
a. The Authority intends to issue approximately $400 million of tax-exempt power revenue bonds. Please discuss financing options and recommendations in the current interest rate environment assuming the draw schedule as shown below. Please provide details of your analysis and interest rate assumptions, and include as an appendix detailed number runs, annual debt service and TIC for each structure.
Hypothetical Draw Schedule
Date Draw Outstanding
12/1/2026 $23,252,814 $23,252,814
6/30/2027 10,070,788 33,323,601
6/30/2028 60,679,830 94,003,432
6/30/2029 98,864,176 192,867,608 https://www.akenergyauthority.org/Who-We-Are/Newsroom/Publications-and-Resources#98523-financial-statements https://www.akenergyauthority.org/Who-We-Are/Newsroom/Publications-and-Resources#98523-financial-statements https://www.akenergyauthority.org/BLEP
6/30/2030 122,809,112 315,676,720
6/30/2031 80,299,603 395,976,323
6/30/2032 4,023,677 400,000,000
$400,000,000
b. AEA may seek to defer payments due until the project is operational, which should occur
2031. Please provide an alternative financing approach to accomplish this goal.
Note that the Authority may also explore options directly with commercial banks such as a line of credit.
E. Credit considerations. Provide a description of the Authority’s ability to access the capital markets for a tax-exempt bond issuance. Note that tax counsel has confirmed that AEA can issue tax-exempt bonds for the Expansion Project. Discuss your recommended approach to rating agencies, including which rating agencies to use on the upcoming bond issuance, and areas of credit strength or weakness for the Authority.
F. Please describe how your marketing plan for the bonds (or other financing option) will benefit the Authority. How will you work to ensure broad distribution and lowest interest costs? Please provide your interest rate outlook.
G. Underwriter spread and counsel. Provide your proposed underwriting compensation, clearly setting forth your assumptions and details. For underwriter’s counsel (if anticipated), please include an estimated or maximum fee as well as a proposed firm and individual.
H. Underwriting team. Please discuss any advantages and disadvantages to having a co-manager on an issue of the size and type proposed for the Bonds. How can a co-manager be used to provide maximum benefit to the Authority? What is an ideal mix of co-managers, if any, to complement the marketing reach of your firm?
PROPOSAL EVALUATION
Proposals will be evaluated based on responses to the information requested herein. The Authority may interview selected firms as part of the evaluation process. While proposed compensation will be one of the factors considered in selecting a firm, the Authority will consider all information provided in response to this request in making its selection.
COMMUNICATION AND REQUESTS FOR ADDITIONAL INFORMATION
Proposing firms are requested to have no contact with the Authority staff, management, or rating agencies in regard to the activities contemplated by this request for proposal until conclusion of the review process. Firms are to rely only on written statements regarding this request for proposals and any other communication will be considered unofficial and non-binding on the Authority.
Communication directed to parties other than AEA’s financial advisor may result in disqualification of the proposing firm.
For additional information regarding this RFP, you may contact PFM Financial Advisors LLC in
Seattle (Thomas Toepfer at 206-858-5360 or toepfert@pfm.com, or Matt Schoenfeld at 206-858-
5365 or schoenfeldm@pfm.com). PFM will coordinate with the Authority or others to provide answers to any questions.
RFP TIMELINE
The following timeline is expected, relative to this RFP, although dates are subject to change:
4/24/26 Distribution of RFP
5/4/26 Deadline for questions to be requested via email to PFM
5/8/26 Target date to respond to questions or requests for clarification
5/19/26 Proposal due at 2:00 PM Alaska Time
Week of 5/25/26 Interviews with selected firms (if necessary)
5/29/26 Appointment of underwriter(s)
Week of 6/1/26 Initial meeting relative to potential transactions
PROPOSAL SUBMITTAL
Questions or requests for clarification or additional information must be received via email to toepfert@pfm.com and schoenfeldm@pfm.com in accordance with the RFP Timeline set forth above.
Please submit proposals, clearly labeled as AEA RFP for Underwriting Services by the date and time above. Proposals may be submitted in person using AEA’s Dropbox, by mail, or emailed to scray@akenergyauthority.org and aeaprocurement@akenergyauthority.org.
mailto:toepfert@pfm.com mailto:schoenfeldm@pfm.com mailto:toepfert@pfm.com mailto:schoenfeldm@pfm.com mailto:scray@akenergyauthority.org mailto:aeaprocurement@akenergyauthority.org
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