M.R. Beal Strikes Billion-Dollar Deal

Black-owned investment bank to underwrite major bond issuance for New York State Dormitory Authority

M.R. Beal & Co. CEO Bernard Beal

In a landmark deal, the Dormitory Authority of the State of New York (DASNY) announced that it selected M.R. Beal & Co. (No. 4 in tax-exempt securities with $1.58 billion in lead issues on the BE Investment Banks list) as senior manager and sole book runner for its $1.3 billion Personal Income Tax (PIT) bond issuance. The firm is led by founder and CEO Bernard Beal.

According to DASNY, this is the largest lead underwriting deal awarded to a minority owned investment banking firm in the history of New York State. “It’s really historical in the sense that this is the first time in the finance capital of the word that we’ve had an MWBE firm really be a true senior lead banker and sole book runner on a deal of this magnitude,” points out Paul T. Williams Jr., DASNY’s president. “To have an MWBE firm in the lead demonstrates–not just to folks here in New York but across the country–that these firms have arrived.”

The deal involves a combination of tax-exempt, taxable, and Build America Bonds (BABs) earmarked to finance State University of New York educational facilities and upstate community colleges, City University of New York facilities, library facilities, EXCEL projects, economic development grants and to refund certain mental health bonds.

According to Williams, Seibert Brandford Shank (No. 3 in taxable securities with $1.8 billion in lead issues, and No. 1 in tax-exempt securities with $7 billion in lead issues on the BE Investment Banks list) was selected to be co-lead on the Build America Bonds section of the transaction. The deal should go to market around June 21, subject to market conditions.

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