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New Issues Headlines

FINAL PRICING WIRE: CITY OF SAN ANTONIO, TEXAS

Tax-Exempt 10:02a EST February 28, 2002

North America, Deal Status
Donald S O'Brien 212-762-8180 USD
Brian L Wynne 212-762-8085
Matthew P Nicosia 212-762-8105
Glen C Balanoff 212-762-8183

Morgan Stanley & Co., Incorporated

1221 Avenue of the Americas
30th Floor
New York, NY 10020
* * * * * * * * * * * * * * * * * * * * * * ** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

Thursday, February 28, 2002 10: 02AM -- --- -- -- --------- -------

----------- - ------ -------
------- --------
MSS Wire #42155 FINAL PRICING WIRE
MSS Master Message #1837445 ---- ----- ------- ---------
------------
----------
------- -- ---
TO: Morgan Stanley & Co., Incorporated
( (Manager)
\, )
RE: $137,820,000
CITY OF SAN ANTONIO, TEXAS
WATER SYSTEM REVENUE BONDS
SERIES 2002-A

LADIES AND GENTLEMEN:

WE HAVE RECEIVED THE WRITTEN AWARD. TODAY FEBRUARY 28, 20002 WILL BE INITIAL
TRADE DATE.

MOODY'S: Aaa S&P: AM FITCH: AM

Aa3 Underlying AA- Underlying AA- Underlying
FSA INSURED

DATED: 02/15/2002 FIRST COUPON: 11/15/2002

DUE: 05/15
ADD'L
TAKEDOWN
MATURITY AMOUNT COUPON PRI CE (pts)

05/15/2006 3,150M 5.00 % 3.17 3/8

(Approx. $ Price 107.059)
05/15/2006 2,OOOM 4.00 % 3.17 3/8
(Approx. $ Price 103.2
05/15/2007 2,095M 4.00 % 3.48 3/8

lof4
 (Approx. $ Price 102.428)
() 05/15/2008
05/15/2008
3 , 270M

2, 00 OM
5.25
4.00
%

g.
0
3.69
(Approx. $ Price 108.508)
3.69
3/8
3/8
(Approx. $ pri ce 101.687)
05/15/2009 3 , 375M 5.25 g.
0 3.91 1/2
(Approx. $ Price 108.282)
05/15/2009 2,OOOM 4.00 % 3.91 1/2
(Approx. $ Price 100.552)
05/15/2010 3 i 75 5M 5.25 % 4.06 1/2
(Approx. $ Price 108.181)
05/15/2010 1,30 OM 4.00 g.
0 4.06 1/2
(Approx. $ Price 99.582)
05/15/2011 4 , 365M 4.125 % 4.16 1/2
(Approx. $ Price 99.731)
05/15/2012 2 , 280M 5.50 g.
0 4.26 1/2
(Approx. $ Price 110.126)
05/15/2012 2 i OOOM 4.25 % 4.26 1/2
(Approx. $ Price 99.913)
05/15/2013 4,OOOM 5.50 g.
0 4.38 1/2
(Approx. $ PTC 05/15/2012 109.092)
05/15/2014 4,OOOM 5.50 % 4.49 1/2
(Approx. $ PTC 05/15/2012 108.154)
05/15/2015 6 i 57 5M 5.50 % 4.57 1/2
(Approx. $ PTC 05/15/2012 107.479)
05/15/2016 5,64 OM 5.50 % 4.67 1/2
(Approx. $ PTC 05/15/2012 106.642)
05/15/2017 5,14 OM 5.50 g.
0 4.75 1/2
(Approx. $ PTC 05/15/2012 105.978)
05/15/2018 4,42 OM 5.50 g.0 4.83 1/2
/ (Approx. $ PTC 05/15/2012 105.319)
05/15/2019 2 i 185M 5.00 5.04 1/2
(
\ ) %

(Approx. $ Price 99.537)

05/15/2020 2 , 46 OM 5.00 % 5.09 1/2
(Approx. $ Price 98.935)
05/15/2021 3 , 51 5M 5.00 g.
0 5.12 1/2
(Approx. $ Price 98.539)
05/15/2022 3 , 285M 5.00 % 5.14 1/2
(Approx. $ Price 98.249)
05/15/2025 13,910M 5.00 g.
0 5.21 1/2
(Approx. $ Price 97.187)
05/15/2032 51, 100M 5.00 % 5.26 1/2
(Approx. $ Price 96.083)

CALL FEATURES: Optional call in 05/15/2012 (g 100.00

PRIORITY OF ORDERS AS FOLLOWS:

1. Texas Retail**
2. Net Designated
3. Member

PRIORITY POLICY:

At least 3 firms must be designated.

No firm may receive more than 45% of any designation.

The Senior Manager will payout all designations.

2of4
 F

(-~)
\.
The Senior Manager requests the identification of all priority orders at the
time the orders are entered.

There will not be any clearance fee taken from designated sales in accordance
wi th MSRB Rule G- 17 .
There are to be no soft-dollar designations.

A minimum of 20% of each designated trade must be designated among the small and
MBE firms (Siebert, Allison and Apex) .

The compliance addendum MSRB Rule G-11 will apply.

The award is expected Thursday, February 28, 2002.

Delivery is firm for March 21, 2002.

This issue is book entry through DTC.

$136,765,000
SERIES 2002A

Award: 02/28/2002
Delivery: 03/21/2002 (Firm)
Initial trade: 02/28/2002
Date of Execution: 02/28/2002
Time of Execution: 10: OOAM Eastern

( ) MATURITY CUS I P COUPON

---------- --------- ------
05/15/2006 796422S38 5.000
05/15/2006 796422S20 4.000
05/15/2007 796422S46 4.000
05/15/2008 796422S79 5.250
05/15/2008 796422S61 4.000
05/15/2009 796422S95 5.250
05/15/2009 796422S87 4.000
05/15/2010 796422T37 5.250
05/15/2010 796422T29 4.000
05/15/2011 796422T45 4.125
05/15/2012 796422T78 5.500
05/15/2012 796422T60 4.250
05/15/2013 796422T86 5.500
05/15/2014 796422T94 5.500
05/15/2015 796422U27 5.500
05/15/2016 796422U35 5.500
05/15/2017 796422U43 5.500
05/15/2018 796422U50 5.500
05/15/2019 796422U68 5.000
05/15/2020 796422U76 5.000
05/15/2021 796422U84 5.000
05/15/2022 796422U92 5.000
05/15/2025 796422V26 5.000
05/15/2032 796422V34 5.000

Morgan Stanley & Co., Incorporated

Siebert Brandford Shank & Co.
) M. E. Allison & Co., Inc.
Apex Pryor Securities a division of Rice Financial Products

30f4
 Bear, Stearns & Co. Inc.
Morgan Keegan & Company
(~')
By: Morgan Stanley & Co., Incorporated New York, NY
Thursday, February 28, 2002 10:02AM
* * *** * * * * * * * * * * * * * * ** * * * ** * * ** * ** * * ** * * * ** * * * * * * * ** * ** * * * * * ** * * * * * ** ** ** * ** ** * * *
This memorandum is based on information generally available to the public from
sources believed to be reliable. No representation is made that it is accurate
or complete. Certain assumptions may have been made in this analysis which have
resulted in any returns detailed herein. No representation is made that any
returns indicated will be achieved. Changes to the assumptions may have a
material impact on any returns detailed. Past performance is not necessarily
indicative of future returns. Price and availability are subject to change
without notice. The foregoing has been prepared solely for informational
purposes, and is not an offer to buy or sellar a solicitation of an offer to
buy or sell any security or instrument or to participate in any particular
trading strategy. Morgan Stanley & Co. Incorporated and/or its affiliates may
have positions in, and may effect transactions in securities and instruments of
issuers mentioned herein and may also provide or seek to provide significant
advice or investment services, including investment banking, for the issuers of
such securities and instruments. ADDITIONAL INFORMATION AVAILABLE UPON REQUEST.
NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY THE U. K. SECURITIES AND
FUTURES AUTHORITY.
* * * ** * * * * * * * * * ** * * * ** * * * * * ** * * * * * * * ** * ** * * * * * ** ** * * * ** * * * * * * * * * ** * * * ** ** * ** * * * * *

( )
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Son Antonio WoterSyslem

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Section 6

Final Cash Flows

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.

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MorganStanley
 )
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

NET DEBT SERVICE SCHEDULE

Date Pnncipal Coupon Interest Total P+I Net New D/S

12131/2002 - - 5,197,598.44 5,197,598.44 4,504,585.31

12131/2003 - - 6,930,131.28 6,930,131.28 6,930,131.28
12131/2004 - . 6,930,131.28 6,930,131.28 6,930,131.28
12131/2005 - - 6,930,131.28 6,930,131.28 6,930,131.28
12131/2006 5,150,000.00 4.612% 6,811,381.28 11,961,381.28 11,961,381.28
12131/2007 2,095,000.00 4.000% 6,650,731.28 8,745,731.28 8,745,731.28
12131/2008 5,270,000.00 4.776% 6,82,993.78 11,752,993.78 11,752,993.78
12131/2009 5,375,000.00 4.785% 6,228,562.53 11,603,562.53 11,603,562.53
12131/2010 5,055,000.00 4.929% 5,975,400.03 11,030,400.03 11,030,400.03
"
12131/2011 4,365,000.00 4.125% 5,760,803.14 10,125,803.14 10,125,803.14
12131/2012 4,280,000.00 4.916% .5,565,575.00 9,845,575.00 9,845,575.00
12131/2013 4,000,000.00 5.500% 5,350,375.00 9,350,375.00 9,350,375.00
12131/2014 4,000,000.00 5.500% 5,130,375.00 9,130,375.00 9,130,375.00
12131/2015 6,575,000.00 5.500% 4,839,562.50 11,414,562.50 11,14,562.50
12131/2016 5,640,000.00 5.500% 4,503,650.00 10..143,650.00 10,143,650.00
12131/2017 5,140,000.00 5.500% 4,207,200.00 9,347,200.00 9,347,200.00
12131/2018 4,420,000.00 5.500% 3,944,300.00 8,364,300.00 8,364,300.00
12131/2019 2,185,000.00 5.000% 3,768,125.00 5,953,125.00 5,953,125.00
12131/2020 2,460,000.00 5.000% 3,652,000.00 6,112,000.00 6,112,000.00
( ) 12131/2021 3,515,000.00 5.00% 3,502,625.00 7,017,625.00 7,017,625.00
12131/2022 3,285,000.00 5.00% 3,332,625.00 6,617,625.00 6,617,625.00
12131/2023 4,275,000.00 5.000% 3,143,625:0 7,418,625.00 7,418,625.00
12131/2024 4,695,000.00 5.000% 2,919,375.00 7,614,375.00 7,614,375.00
12131/2025 4,940,000.00 5.00% 2,678,500.00 7,618,500.00 7,618,500.00
12131/2026 5,190,000.00 5.000% 2,425,250.00 7,615,250.00 7,615,250.00
12131/2027 5,730,000.00 5.000% 2,152,250.00. 7,882,250.00 7,882,250.00
12131/2028 7,255,000.00 5.00% 1,827,625.00 9,082,625.00 9,082,625.00
12131/2029 7,625,000.00 5.00% 1,455,625.00 9,080,625.00 9,080,625.00
12131/2030 8,015,000.00 5.000% 1,064,625.00 9,079,625.00 9,079,625.00
12131/2031 8,25,000.00 5.00% 653,625.00 9,078,625.00 9,078,625.00
12131/2032 8,860,000.00 5.000% 221,500.00 9,081,500.00 9,081,500.00

Total 137,820,000.00 - 130,236,276.82 . 268,056,276.82 267,363,263.69

First Southwest Company File = SA WS.SF-02 senior new 022602 final

Public Finance 2126/2002 1:08 PM

,,)
,/)
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

TOTAL ISSUE SOURCES AND USES

Dated 02115/2002
Delivered 03/21/2002

Water Supply Portio Water Delivery Port Wastewater Portion Issue Summary
SOURCES OF FUNDS
Par Amount of Bonds............................................ $51,290,000.00 $46,090,000.00 $40,440,000.00 $137,820,000.00
Reoffering Premium...... ................. ............ ........... 1,368,376.25 1,247,454.70 960,534.65 3,576,365.60
Accrued Interest from 02/15/2002 to 03/21/2002..... 259,303.13 231,948.13 201,761.87 693,013.13
TOTAL SOURCES......... ..:... .... ...:.. ..... ..... ..... .;....... $52.917,679.38 $47,569,402.83 $41,602,296.52 $142,089,378.73
USES OF FUNDS
Original Issue Discount (010)................................. 895,325.15 845,345.65 818,310.40 2.558,981.20
Total Underwriter's Discount (0.596%).................. 306,259.83 275,715.30 239,095:04 821,070.17
Costs of Issuance................................................. 102,766.08 92.347.21 81,028.71 276,140.00
Gross Bond Insurance Premium............................. 168,861.47 152,128.88 134,705.32 455,695.67
Surety for Reserve Fund....................................... 60,094.62 54,001.97 47,382.06 161,478.65
Deposit to Debt Service Fund................................ 259,303.13 231,948.13 201,761.87 693,013.13
Deposit to Project Construction Fund..................... 51,121,400.00 45,916,840.00 40,084.231.00 137,122,471.00
Rounding Amount.......... ..... ..................... .............. 3,669.10 1,075.69 (2,215.88) 2.528.91
TOTAL USES......... .... ...... .............. .......... .... .... ..... $52,917,679.38 $47,569,402.83 $41,602,296.52 $142,089,378.73

)
First Soulhwest Company File = SAWS.SF.02 senior new 022602 final
Public Finance
2/26/2002 1:08 PM
()
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

DEBT SERVICE SCHEDULE

Date Principal Coupon Interest Total P+I FISCAL TOTAL
3/21/2002 - - - - -
11/15/2002 - - 5,197,598.44 -
5,197,598.44
12/31/2002 - - - - 5,197,598.44
5/15/2003 - - 3,465,065.64 3,465,065.64 -
11/15/2003 - - 3,465,065.64 3,465,065.64 -
12/31/2003 - - - - 6,930,131.28
5/15/2004 - - 3,465,065.64 3,465,065.64 -
11/1512004 - - 3,465,065.64 3,465,065.64 -
12/31/2004 - - - - 6,930,131.28
5/15/2005 - - 3,465,065.64 3,465,065.64 -
11/15/2005 -. - 3,465,065.64 3,465,065.64 -
12/31/2005 - - - - 6,930,131.28
5/15/2006 5,150,000.00 4.612% 3,65,065.64 8,615,065.64 -
11/15/2006 - - 3,346,315.64 3,346,315.64 -
12/31/2006 - - - - 11,961,381.28
5/15/2007 2,095,000.00 4.000% 3,346,315.64 5,441,315.64 -
11/15/2007 - - 3,304,415.64 3,304,415.64 -
12/31/2007 - - - -
( ) 8,745,731.28
5/15/2008 5,270,000.00 4.776% 3,304,415.64 8,574,415.64 -
11/15/2008 - - 3,178,578.14 3,178,578.14 -
12/31/2008 - - - - 11,752,993.78
5/15/2009 5,375,000.00 4.785% 3,178,578.14 8,553,578.14 -
11/15/2009 - - 3,049,984.39 3,049,984.39 -
12/31/2009 - - - - 11,603,562.53
5/15/2010 5,055,000.00 4.929% 3,049,984.39 8,104,984.39 -
11/15/2010 - - 2,925,415.64 2,925,15.64 -
12/31/2010 - - - - 11,030,400.03
5/15/2011 4,365,000.00 4.125% 2,925,415.64 7,290.15.64 -
11/15/2011 - - 2,835,387.50 2,835,387.50 -
12/31/2011 - - - - 10,125,803.14
5/15/2012 4,280,000.00 4.916% 2,835,387.50 7,115,387.50 -
11/15/2012 - - 2,730,187.50 2,730,187.50 -
12/31/2012 - - - - 9,845,575.00
5/15/2013 4,000,000.00 5.500% 2,730,187.50 6,730,187.50 -
11/15/2013 - - 2,620,187.50 2,620,187.50 -
12/31/2013 - - - - 9,350,375.00
5/15/2014 4,000,000.00 5.500% 2,620,187.50 6,620,187.50 -
11/15/2014 - - 2,510,187.50 2,510,187.50 -
12/31/2014 - - - - 9,130,375.00
5/15/2015 6,575,000.00 5.500% 2,510,187.50 9,085,187.50 -
11/15/2015 - - 2,329,375.00 2,329,375.00 -
12/31/2015 - - - " 11 ,414,562.50
5/15/2016 5,640,000.00 5.500% 2,329,375.00 7,969,375.00 -
11/15/2016 - - 2,174,275.00 2,174,275.00 -
12/31/2016 - - - - 10,143,650.00
5/15/2017 5,140,000.00 5.500% 2,174,275.00 .7,314,275.00 -
11/15/2017 - - 2,032,925.00 2,032,925.00 -
12/31/2017 - - - - 9,347,200.00
5/15/2018 4,420,000.00 5.500% 2,032,925.00 6,452,925.00 -
\
/
First Southwest Company File = SAWS.SF-02 senior new 022602 final
Public Finance 2/26/2002 1:08 PM
 )
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

DEBT SERVICE SCHEDULE

Dale Principal Coupon Inlerest Total P+I FISCAL TOTAL
11/15/2018 - - 1,911,375.00 1,911,375.00 -
12/31/2018 - - '- 0 8,364,300.00
5/15/2019 2,185,000.00 5.000% 1,911,375.00 4,096,375.00 -
11/15/2019 - 0 1,856,750.00 1,856,750.00 -
12/31/2019 - - - - 5,953,125.00
5/15/2020 2,460,000.00 5.00% 1 ;856,750.00 4,316,750.00 -
11/15/2020 - 0 1,795,250,00 1,795,250.00 -
12/31/2020 - - - - 6,112,000.00
5/15/2021 3,515,000.00 5.000% 1,795,250.00 5,310,250.00 -
11/15/2021 - - 1,707,375.00 1,707,375.00 -
12/31/2021 - - - - 7,017,625.00
5/15/2022 3,285,000.00 5.000% 1,707,375.00 4,992,375.00 -
11/15/2022 - 0 1,625,250.00 1,625,250.00 -
12/31/2022 0 - - - 6,617,625.00
5/15/2023 4,275,000.00 5.000% 1,625,250.00 5,900,250.00 -
11/15/2023 - 0 1,518,375.00 1,518,375.00 -
12/31/2023 - - - - 7,418,625.00
( 5/15/2024 4,695,000.00 5.000% 1,518,375.00 6,213,375.00 0

\ ) 11/15/2024
12/31/2024
-
0
-
-
1 ,401,000.00
-
1,401,000.00
-
-
7,614,375.00
5/15/2025 4,940,000.00 5.00% 1,401,000.00 6,341,000.00 -
11/15/2025 - - 1,277,500.00 1,277500.00 -
12/31/2025 - 0 - - 7,618,500.00
5/15/2026 5,190,000.00 5.00% 1,277,500.00 6,467,500.00 -
11/15/2026 - - 1,147,750.00 1,147,750.00 -
12/31/2026 - - - - 7,615,250.00
5/15/2027 5,730,000.00 5.00% 1,147,750.00 6,877,750.00 · -
11/15/2027 - - 1,004,500.00 1,004,500.00 -
12/31/2027 - - - - 7,882,250.00
5/15/2028 7:255,000.00 5.000% 1,004,500.00 8,259,500.00 -
11/15/2028 - - 823,125.00 823,125.00 -
12/31/2028 - - - - 9,082,625.00
5/15/2029 7,625,000.00 5.000% 823,125.00 8,448,125.00 -
11/15/2029 - - 632,500.00 632,500.00 -
12/31/2029 - - - - 9,080,625.00
5/15/2030 8,015,000.00 5.000% 632,500.00 8,647,500.00 -
11/15/2030 0 - 432,125.00 432,125.00 0
12/31/2030 0 0 - - 9,079,625.00
5/15/2031 8,25,000.00 5.000% 432,125.00 8,857,125.00 .-
11/15/2031 - - 221,500.00 221,500.00 -
12/31/2031 0 0 - - 9,078,625.00
5/15/2032 8,860,000.00 5.00% 221,500.00 9,081,500.00 -
12/31/2032 - 0 - - 9,081,500.00

Total 137,820,000.00 - 130,236,276.82 268,056,276.82 -

First Southwest Company File = SAWS.SF-02 senior new 022602 final

Public Finance 2/26/2002 1 :08 PM

)
 )
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

DEBT SERVICE SCHEDULE

YIELD STATISTICS

Accrued Interest from 02115/2002 to 03/21/2002....................................................................... 693,013.13

Bond Year Dollars.......................... ............. .................. ...... ........................... .............................. $2,579,010.00
Average Life.......... ........................................ ...................... ....................................... ................. 18.713 Years
Average Coupon............... ............ ........... '" ............ ...... ......................... .............. ........................ 5.0498554%

Net Interest Cost (NIC)... .................................................. ....................................................... ...... 5.0421659%

Lrue Interest Cost (TIC).......... ....... .......... ............... ..................................................................... 5.0383982%
Bond Yield for Arbitrage Purposes.............................................................................................. 5.0069339%
All Inclusive Cost (AIC)........ ...... ............................................ :....................................................
5.0957258%

IRS FORM 8038

Net Interest Cost......................................................................................................................... 5.0657860%
Weighted Average Maturily..........................................................................,............................. 18.274 Years

First Southwest Company File = SA WS. SF-02 senior new 022602 final
Public Finance 212612002 1:08 PM

( )

~- )
 ( '\
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

PRICING SUMMARY
Maturi Type of Bond Coupon Yield Maturity Value Price Dollar Price

5/15/2006 Serial Coupon 2,000,000.00

4.000% 3.170% 103.200% 2,064,000.00
5/15/2006 Serial Coupon 3,150,000.00
5.00% 3.170% 107.059% 3,372,358.50
5/15/2007 Serial Coupon
4.000% 3.480% 2,095,000.00 102.428% 2,145,866.60
5/15/2008 Serial Coupon
4.000% 3.690% 2,000,000.00 101.687% 2,033,740.00
5/15/2008 Serial Coupon
5.250% 3.690% 3,270,000.00 108.508% 3,548,211.60
5/15/2009 Serial Coupon
4.000% 3.910% 2,000,000.00 100.552% 2,011,040.00
5/15/2009 Serial Coupon
5.250% 3.910% 3,375,000.00 108.282% 3,654,517.50
5/15/2010 Serial Coupon
4.000% 4.060% 1,300,000.00 99.582% 1,294,566.00
5/15/2010 Serial Coupon
5.250% 4.060% 3,755,000.00 108.181% 4,062,196.55
5/15/2011 Serial Coupon
4.125% 4.160% 4,365,000.00 99.731 % 4,353,258.15
5/15/2012 Serial Coupon
4.250% 4.260% 2,000,000.00 99.913% 1,998,260.00
5/15/2012 Serial Coupon
5.500% 4.260% 2,280,000.00 110.126% 2,510,872.80
5/15/2013 Serial Coupon
5.500% 4.380% 4,000,000.00 109.092% c 4,363,680.00
5/15/2014 Serial Coupon
5.500% 4.490% 4,000,000.00 108.154% c 4,326,160.00
5/~5/2015 Serial Coupon
5.500% 4.570% 6,575,000.00 107.479%. c 7,066,744.25
5/15/2016 Serial Coupon
5.500% 4.670% 5,640,000.00 106.642% c 6,014,608.80 ,

5/15/2017 Serial Coupon

5.500% 4.750% 5,140,000.00 105.978% c 5,47,269.20
/ ) 5/15/2018 Serial Coupon
5.500% 4.830% 4,420,000.00 105.319% c 4,655,099.80
(" 5/15/2019 Serial Coupon
5.000% 5.040% 2,185,000.00 99.537% 2,174,883.45
5/15/2020 Serial Coupon
5.00% 5.090% 2,460,000.00 98.935% 2,433,801.00
5/15/2021 Serial Coupon
5.000% 5.120% 3,515,000.00 98.539% 3,463,645.85
5/15/2022 Serial Coupon 5.00% 5.140% 3,285,000.00 98.249% 3,227,479.65
5/15/2025 Term 1 Coupon 5.000% 5.210% 13,910,000.00 97.187% 13,518,711.70
5/15/2032 Term 2 Coupon 5.000% 5.260% 51,100,000.00 96.083% 49,098,13.00
Total - - - - 137,820,000.00 - - 138,839,384.40

BID INFORMATION

Par Amount of Bonds................................................. $137,820,000.00

Reoffering Premium or (Discount).............................. 1,019,384.40
Gross Production......................................................... $138,839,384.40

Total Underwriter's Discount (0.596%)...................... $(821,Q0.17)

Bid (100.144%)......................................................... 138,018,314.23

Accrued Interest from 02115/2002 to 03/21/2002....... 693,013.13

Total Purchase Price................................................... $138,711,327.36

Bond Year Dollars.............;......................................... $2,579,010.00

Average Life.... ................ .......... ........... ............ ........... 18.713 Years
Average Coupon... ....................... ........... ....... ...... ....... 5.0498554%

Net Interest Cost (NIC)................................................ 5.0421659%

True Interest Cost (TiC).............................................. 5.0383982%

. First Southwest Company File = SA WS.SF-02 senior new 022602 final

Public Finance 2/26/2002 1:08 PM
 -)
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

SUMMARY OF UNDERWRITER'S DISCOUNT

Maturity Concession + Takedown = Total Issuance Value Total Takedown
5/15/2006 - 0.375% 0.375% 5,150,000.00 19,312.50
5/15/2007 - . 0.375% 0.375% 2,095,000.00 7,856.25
5/15/2008 - 0.375% 0.375% 5,270,000.00 19,762.50
5/15/2009 - 0.500% 0.500% 5,375,000.00 26,875.00
5/15/2010 - 0.500% 0.500% 5,055,000.00 25,275.00
5/15/2011 - 0.500% 0.500% 4,365,000.00 21,825.00
5/15/2012 - 0.500% 0.500% 4,280,000.00 21,400.00
5/15/2013 - 0.500% 0.500% 4,000,000.00 20,000.00
5/15/2014 - 0.500% 0.500% 4,000,000.00 20,000.00
5/15/2015 - 0.500% 0.500% 6,575,000.00 32,875.00
5/15/2016 - 0.500% 0.500% 5,640,000.00 28,200.00
5/15/2017 - 0.00% 0.500% 5,140,000.00 25,700.00
5/15/2018 - 0.500% 0.500% 4,420,000.00 22,100.00
5/15/2019 - 0.500% 0.500% 2,185,000.00 10,925.00
5/15/2020 - 0.500% 0.500% 2,460,000.00 12,300.00
5/15/2021 - 0.500% 0.500% 3,515,000.00 17,575.00
5/15/2022 - 0.500% 0.500% 3,285,000.00 16,425.00
(
/ 5/15/2025 - 0.500% 0.500% 13,910,000.00 69,550.00
5/15/2032 - 0.500% 0.500% 51,100,000.00
\
'. ) 255,500.00

Total - - - 137,820,000.00 673,456.25

UNDERWRING & ISSUANCE EXPENSES

Total Management Fees (0.050%)......................... ............................:........................................ $68,910.00

Total Average Takedown (0.489%)................. ....... ...................... ........................ ..... ................ $673,456.25
Total Underwriters Expenses (0.057%)...................... ........... ................................... ................. $78,703.92

TOTAL UNDERWRITING SPREAD (0.596%).............................................................................' $821,070.17

First Southwest Company File = SAWS.SF-02 senior new 022602 final

Public FInance 2126/2002 1:08 PM

/
ì
:' )
i
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

PROOF OF PREMIUM BOND SELECTION OF CALL DATES/PRICES

Maturity Call Date Call Price PV at Bond Yield Lowest?
5/15/2013 - - 4,187,747.17 No
5/15/2013 5/15/2012 100.000% 4,176,241.87 Yes
5/15/2014 - - 4,198,697.33 No
5/15/2014 5/15/2012 100.000% 4,176,241.87 Yes
5/15/2015 - " 6,918,739.61 No
5/15/2015 5/15/2012 100.000% 6,864,697.57 Yes
5/15/2016 - - 5,948,843.75 No
5/15/2016 5/15/2012 100.000% 5,888,501.04 Yes
5/15/2017 - - 5,433,594.87 No
5/15/2017 5/15/2012 100.000% 5,366,470.80 Yes
5/15/2018 - - 4.682,397.03 No
5/15/2018 5/15/201~ 100.000% . 4,614,747.27 Yes

First Southwest Company File = SA WS. SF-02 senior new 022602 final
Public Finance 2/26/2002 1:08 PM
( )
\

)
()
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

PROOF OF DIS FOR ARBITRAGE PURPOSES

Date Principal Interest Total

3/21/2002 - . .
11/15/2002 . 5,197,598.44 5,197,598.44
5/15/2003 - 3,465,065.63 3,465,065.63
11/15/2003 . 3,465,065.63 3,465,065.63
5/15/2004 - 3,465,065.63 3,465,065.63
11/15/2004 - 3,465,065.63 3,465,065.63
5/15/2005 - 3,465,065.63 3,465,065.63
11/15/2005 . 3,465,065.63 3,465,065.63
5/15/200ß 5,150,000.00 3,465,065.63 8,615,065.63
. ,
11/15/2006 3,346,315.63 3,346,315.63
5/15/2007 2,095,000.00 3,346,315.63 5,441,315.63
11/15/2007 .. 3,304,415.63 3,304,415.63
5/15/2008 5,270,000.Ob 3,304,415.63 8,574,415.63
11/15/2008 - 3,178,578.13 3,178,578.13
5/15/2009 5,375,000.00 3,178,578.13 8,553,578.13
11/15/2009 - 3,049,984.38 3,049,984.38
5/15/2010 5,055,000.00 3,049,984.38 8,104,984.38
11/15/2010 - 2,925,415.63 2,925,415.63
5/15/2011 4,365,000.00 . 2,925,415.63 7,290,415.63
( ) 11/15/2011 . 2,835,387.50 2,835,387.50
5/15/2012 34,055,000.00 2,835,387.50 36,890,387.50
11/15/2012 - 1,911,375.00 1,911,375.00
5/15/2013 - 1,911,375.00 1,911,375.00
11/15/2013 . 1,911,375.00 1,911,375.00
5/15/2014 - 1,911,375.00 1,911,375.00
11/15/2014 - 1,911,375.00 1,911,375.00
5/15/2015 - 1,911,375.00 1,911 ,375.00
11/15/2015 - 1,911,375.00 1,911 ,375.00
5/15/2016 . 1,911,375.00 1,911,375.00
11/15/2016 . 1,911,375.00 1,911,375.00
5/15/2017 - 1,911,375.00 1,911,375,00
11/15/2017 - 1,911,375.00 1,911,375.00
5/15/2018 - 1,911,375.00 1,911,375.00
11/15/2018 - 1,911,375.00 1,911,375.00
5/15/2019 2;185,000.00 1,911,375.00 4,096,375.00
11/15/2019 . 1,856,750.00 1,856,750.00
5/15/2020 2,460,000.00 1,856,750.00 4,316,750.00
11/15/2020 - 1,795,250.00 1,795,250.00
5/15/2021 3,515,000.00 1,795,250.00 5,310,250.00
11/15/202f . 1,707,375.00 1,707,375.00
5/15/2022 3,285,000.00 1,707,375.00 4,992,375.00
11/15/2022 - 1,625,250.00 1,625,250.00
5/15/2023 4,275,000.00 1,625,250.00 5,900,250.00
11/15/2023 - 1,518,375.00 1,518,375:0
5/15/2024 4,695,000.00 1,518,375.00 6,213,375.00
11/15/2024 - 1,401,000.00 1,401,000.00
5/15/2025 4,940,000.00 1,401,000.00 6,341,000.00
11/15/2025 . 1,277,500.00 1,277 ,500.00
5/15/2026 5,190,000.00 1,277,500.00 6,467,500.00

First Southwest Company File = SAWS.SF-02 senior new 022602 final

Public Finance 2/26/2002 1:08 PM
(')
City of San Antonio, Texas
Water System Revenue Boncls
Series 2002-A

PROOF OF DIS FOR ARBITRAGE PURPOSES

Date Pnncipal Interest Total
11/15/2026 - 1,147,750.00 1,147,750.00
5/15/2027 5,730,000.00 1,147,750.00 6,877,750.00
11/15/2027 - 1,004,500.00 1,004,500.00
5/15/2028 7,255,000.00 1,004,500.00 8,259,500.00
11/15/2028 - 823,125.00 823,125.00
5/15/2029 7,625,000.00 823,125.00 8,448,125.00
11/15/2029 - 632,500.00 632,500.00
5/15/2030 8,015,000.00 632,500.00 8,647,500.00
11/15/2030 - 432,125.00 432,125.00
5/15/2031 8,25,000.00 432,125.00 8,857,125.00
11/15/2031 - 221,500.00 221,500.00
5/15/2032 8,860,000.00 221,500.00 9,081,500.00

Total 137,820,000.00 124,378,501.65 262,198,501.65

First Southwest Company File = SA WS.SF-02 senior new 022602 final

) Public Finance 2/2612002 1:08 PM

\I
)
(j
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

PROOF OF BOND YIELD ~ 5.0069339%

Date Cashflow PV Factor Present Value . Cumulative PV
3/21/2002 - 1.0000000x - -
11/15/2002 5,197,598.44 0.9683668x 5,033,181.62 5,033,181.62
5/15/2003 3,65,065.63 0.9447161x 3,273,503.34 8,306,684.97
11/15/2003 3,465,065.63 0.9216431x 3,193,553.78 11,500,238.75
5/15/2004 3,465,065.63 0:8991336x 3,115,556.84 14,615,795.59
11/15/2004 3,65,065.63 0.8771738x 3,039,464.85 17,655,260.44
5/15/2005 3,465,065.63 0.8557504x 2,965,231.26 20,620,491.70
11/15/2005 3,465,065.63 0.8348502x 2,892,810.70 23,513,302.40
5/15/2006 8,615,065.63 0.8144604x 7,016,630.16 30,529,932.56
11/15/2006 3,346,315.63 0.7945687x 2,658,877.59 33,188,810.14
5/15/2007 5,441,315.63 0.7751627x 4,217,905.10 37,406,715.25
11/15/2007 3,304,415.63 0.7562307x 2,498,900.70 . 39,905,615.95
5/15/2008 8,574,415.63 0.7377611x 6,325,870.66 46,231,486.61
11/15/2008 3,178,578.13 0.7197426x 2,287,758.16 48,519,244.77
5/15/2009 8,553,578.13 0.7021642x 6,006,016.13 54,525,260.90
11/15/2009 3,049,984.38 0.6850150x 2,089,285.20 56,614,546.10
5/15/2010 8,104,984.38 0.6682848x 5,416,437.55 62,030,983.64
11/15/2010 2,925,415.63 0.6519631x 1,907,262.99 63,938;246.63
/
') 5/15/2011
11/15/2011
7,290,415.63
2,835,387.50
0.6360400x
0.6205059x
4,636,996.16 68,575,242.79
1,759,374.58 70,334,617.38
5/15/2012 . 36,890,387.50 0.6053511x 22,331,636.80 92,666,254.18
11/15/2012 1,911,375.00 0.5905665x 1,128,793.98 93,795,048.17
5/15/2013 1,911,375.00 0.5761429x 1,101,225.17 94,896,273.34
11/15/2013 1,911,375.00 0.5620716x 1,074,329.69 95,970,603.02
5/15/2014 1,911,375.00 0.5483440x 1,048,91.07 97,018,694.10
11/15/2014 1,911,375.00 0.5349517x 1,022,493.29 98,041,187.39
5/15/2015 1,911,375.00 0.5218864x 997,520.69 99,038,708.07
11/15/2015 1,911,375.00 0.5091403x 973,158.00 100,011,866.07
5/15/2016 1,911,375.00 0.4967054x 949,390.33 100,961,256.40
11/15/2016 1,911,375.00 0.4845743x 926,203.14 101,887,459.54
5/15/2017 1,911,375.00 0.4727394x 903,582.25 102,791,041.79
11/15/2017 1,911,375.00 0.4611936x 881,513.85 103,672,555.64
5/15/2018 1,911,375.00 0.4499297x 859,984.42 104,532,540.06
11/15/2018 1,911,375.00 0,438941 Ox 838,980.81 105,371,520.87
5/15/2019 4,096,375.00 0,4282206x 1,754,152.23 107,125,673.10
11/15/2019 1,856,750.00 0,4177621 x 775,679.74 107,901,352.84
5/15/2020 4,316,750.00 0,4075590x 1,759,330.21 109,660,683.05
11/15/2020 1,795,250.00 0.3976051 x 713,800.49 110,374,483.55
5/15/2021 5,310,250.00 0.3878943x 2,059,815.5cO 112,434,299.04
11/15/2021 1,707,375.00 0.3784206x 646,105.91 113,080,404.96
5/15/2022 4,992,375.00 0.3691784x 1,843,076.85 114,923,481.81
11/15/2022 1,625,250.00 0.3601618x 585,353.02 115,508,834.83
5/15/2023 5,900,250.00 0.3513655x 2,073,144.38 117,581,979.21
11/15/2023 1,518,375.00 0.3427840x 520,474.70 118,102,453.91
5/15/2024 6,213,375.00 0.3344121x 2,077,827.98 120,180,281.89
11/15/2024 1,401,000.00 0.3262447x 457,068.83 120,637,350.72
5/15/2025 6,341,000.00 0.3182768x 2,018,192.88 122,655,543.60
11/15/2025 1,277,500.00 0.3105034x 396,668.09 123,052,211.69
5/15/2026 6,467,500.00 0.3029199x 1,959,134.46 125,011,346.15

/
First Southwest Company Fi/e = SAWS.SF-02 senior new 022602 final
Public Finance 2/26/2002 1:08 PM
,/"I'\.

City of San Antonio, Texas

Water System Revenue Bonds
Series 2002-A

PROOF OF BOND YIELD ~ 5.0069339%

Date Cashflow PV Factor Present Value Cumulàtive PV

11/15/2026 1,147,750.00 0.2955216x 339,184.93 125,350,531.09

5/15/2027 6,877750.00 0.2883040x 1,982,882.97 127,333,414.05
11/15/2027 1,004,500.00 0.2812627x 282,528.38 127,615,942.44
5/15/2028 8,259,500.00 0.2743934x 2,266,351.90 129,882,294.34
11/15/2028 823,125.00 0.2676918x 220,343.79 130,102,638.13
5/15/2029 8,448,125.00 0.2611539x 2,206,260.60 132,308,898.73
11/15/2029 632,500.00 0.2547757x 161,145.60 132,470,044.33
5/15/2030 8,647,500.00 0.2485532x 2,149,363.84 134,619,408.18
11/15/2030 432,125.00 0.2424827x 104,782.85 134,724,191.03
5/15/2031 8,857,125.00 0.2365605x 2,095,246.06 136,819,437.09
11/15/2031 221,500.00 0.2307829x 51,118.42 136,870,555.51
5/15/2032 9,081,500.00 0.2251465x 2,044,667.70 138,915,223.21

Total 262,198,501.65 - 138,915,223.21 -

DERIVATION OF TARGET AMOUNT

Par Amount of Bonds...... ...... ............ ................ ..................................................... ............. ..... $137,820,000.00
) Reoffering Premium or (Discount).................................................................. ............ ....... ........ 1,019,384.40
Accrued Interest from 02115/2002 to 03/21/2002..................................................................... 693,013.13
Bond Insurance Premium........... ...... ........................................................................................ (455,695.67)
Other Credit Enhancement Fees.............................................................................................. (161,478.65)

Original Issue Proceeds........ .............................................................................. ..................... $138,915,223.21

First Southwest Company File = SA WS. SF-02 ~enlor new 022602 final
Public Finance 2/26/2002 1 :08 PM

\
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/
()
City of San Antonio, Texas
Water System Revenue Bonds
Series 2002-A

DERIVATION OF FORM 8038 YIELD STATISTICS

Maturity Issuance Value Price Issuance PRICE Exponent Bond Years
3/21/2002 - - - . -
5/15/2006 2,000,000.00 103.200% 2,064,000.00 4.1500000x 8,565,600.00
5/15/2006 3,150,000.00 107.059% 3,372,358.50 4.1500000x 13,995,287.78
5/15/2007 2,095,000.00 102.428% 2,145,866.60 5.1500000x 11,051,212.99
5/15/2007 - 107.008% - 5.1500000x -
5/15/2008 2,000,000.00 101.687% 2,033,740.00 6.1500000x 12,507,501.00
5/15/2008 3,270,000.00 108.508% 3,548,211.60 6.1500000x 21,821,501.34
5/15/2009 2,000,000.00 100.552% 2,011,040.00 7.1500000x 14,378,936.00
5/15/2009 3,375,000.00 108.282% 3,654,517.50 7.1500000x 26,129,800.13
5/15/2010 1,300,000.00 99.582% 1,294,566.00 8.1500000x 10,550,712.90
5/15/2010 3,755,000.00 108.181% 4,062,196.55 8.1500000x 33,106,901.88
5/15/2011 4,365,000.00 99.731% 4,353,258.15 9.1500000x 39,832,312.07
5/15/2012 2,000,000.00 99.913% 1,998,260.00 10.1500000x 20,282,339.00
5/15/2012 2,280,000.00 110.126% 2,510,872.80 10.1500000x 25,485,358.92
5/15/2013 4,000,000.00 109.092% 4,363,680.00 11.1500000x 48,655,032.00
5/15/2014 4,000,000.00 108.154% 4,326,160.00 12.1500000x 52,562,844.00
5/15/2015 6,575,000.00 107.479% 7,066,744.25 13.1500000x 92,927,686.89
5/15/2016 5,640,000.00 106.642% 6,014,608.80 14.1500000x 85,106,714.52
5/15/2017 5,140,000.00 105.978% 5,447,269.20 15.1500000x 82,526,128.38
( ) 5/15/2018 4,420,000.00 105.319% 4,655,099.80 16.1500000x 75,179,861.77
5/15/2019 2,185,000.00 99.537% 2,174,883.45 17 .1500000x 37,299,251.17
5/15/2020 2,460,000.00 98.935% 2,433,801.00 18.1500000x 44,173,488.15
5/15/2021 3,515,000.00 98.539% 3,63,645.85 19.15ÓOOOOx 66,328,818.03
5/15/2022 3,285,000.00 98.249% 3,227,479.65 20.1500000x 65,033,714.95
5/15/2023 4,275,000.00 97.187% 4,154,744.25 21.1500000x 87,872,840.89
5/15/2024 4,695,000.00 97.187% 4,562,929.65 22.1500000x 101,068,891.75
5/15/2025 4,940,000.00 97.187% 4,801,037.80 23.1500000x 111,144,025.07
5/15/2026 5,190,000.00 96.083% 4,986,707.70 24.1500000x 120,428,990.96
5/15/2027 5,730,000.00 96.083% 5,505,555.90 25.1500000x 138,464,730.89
5/15/2028 7,255,000.00 96.083% 6,970,821.65 26.1500000x 182,286,986.15
5/15/2029 7,625,000.00 96.083% 7,326,328.75 27.1500aOOx 198,909,825.56
5/15/2030 8,015,000.00 96.083% 7,701,052.45 28.1500000x 216,784,626.47
5/15/2031 8,425,000.00 96.083% 8,094,992.75 29.1500000x 235,969,038.66
5/15/2032 8,860,000.00 96.083% 8,512,953.80 30.1500000x 256,665,557.07

Total 137,820,000.00 - 138,839,384.40 - 2,537,096,517.31

IRS FORM 8038

Weighted Average Maturity = Bond Years/Issue Price............................................................. 18.274 Years

TotalInterest from Debt Service............................................................................................. 130,236,276.82

Accrued Interest from 02/15/2002 to 03/21/2002..................................................................... (693,013.13)
Reofferlng (Premium) or Discount.......... .......................... ............. .......... ..........................,....... (1,019,384.40)

Total Interest........................................................................................................................... 128,523,879.29

NIC = Interest/ (Issue Price. Average Maturity)...,.................................................................. 5.0657860%

Bond Yield for Arbltrage Purposes.............................................;............................................. 5.0069339%

) First Southwest Company File = SA WS. SF-02 senior new 022602 final
Public Finance 2/26/2002 1:08 PM
( )

Son Antonio Woter SystRm

\
)

Section 9

Summary of Orders and Allotments

\ )
/

"'
MorganStanley
 /~'- ~.~
.~ '~ .~ \
I

Summary of Orders and Allotments

Distribution of Orders and Allotments

Scn Antonio Woter Sysiem

Orders and Allotments Distribution of Orders

(ODD's)
Orders
Institutional $226,945
Retail $26,740
Total Orders $253,685

Allotments
Institutional $116,125
Retail $21,695
Total Allotments $137,820
Institutional
89.46%

Distribution of Allotments

Institutional
84.26%

MorganStan!ey
 .~
~ '-.
\

Summary of Orders and Allotments

Distribution of Member and Priority Orders and Allotments

Son Antonio Wa ter SYSl em

City of San Antonio, Texas

Water System Revenue Bonds, Series 2002~A
(OOO's) Member
Orders Allotments
Priority
Orders Allotments
Total
Orders Allotments
Senior Manager

Morgan Stanley $29,570 $23,625 $136,665 $91,255 $166,235 $114,880

Co-Senior Manager
Î ,'0'0 tlo
Siebert Brandford Shank 26,900 7,310 3,000 2,840 29,900 10,150

Co-Managers
....õ""!/
M.E. Allson 3,275 3,275 0 0 3,275 3,275
Apex Pryor Securities 14,000 1,000 0 0 14,000 1,000
,;. ?;q;) .
Bear Stearns 17,435 3,475 500 500 17,935 3,975

Morgan Keegan 22,340 4,540 0 0 22,340 4,540

$113,520 $43,225 $140,165 $94,595 $253,685 $137,820

Morgan Sta n I ey
~
( )

Son AntoniQ Water Sys1em

Section 1 0

Retail Order Period Results

"'
MorganStanley
 / - ,.-_....'\

\"""-- "-/ ~.
Retail Order Period Results

Distribution of Retail Orders

Scn Anton io Water Sys tem

$137,820,000 City of San Antonio,Texas, Water System Revenue Bonds, Series 2002-A
Retail Orders ('000)
Maturity Morgan Stanley Siebert Brandford Shank M.E. Allson & Co. Apex Pryor Securities Bear Stearns Morgan Keegan Total
2006 2,195 150 200 0 0 525 3,070
2007 4,215 0 850 0 0 195 5,260
2008 3,165 0 275 0 0 425 3,865
2009 1,900 0 150 0 200 600 2,850
2010 1,550 0 300 0 0 300 2,150
2011 1,775 0 500 0 0 0 2,275
2012 2,045 500 50 0 0 385 2,980
2013 500 0 100 0 0 0 600
2019 25 0 0 0 0 110 135
2020 25 0 350 0 25 0 400
2022 375 0 0 0 0 0 375
2025T 1,750 0 0 0 0 0 1,750
2032T 1,030 0 0 0 0 0 1,030
Total 20,550 650 2,775 0 225 2,540 26,740

Distribution of Retail Orders

Bear Steams
0.84%
M.E. Alison
Morgan Stanley
10.38% 76.85%

Siebert /
Bradfod
Shan
2.43%

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So n Antonio Wa te r Sys fern

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Section 11

Bond Designations

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Bond Designations

Allocation of Bond Designations

Son Antonio Water Sys1em

Distribution of . Designations ($)

Morgan Stanley
57.78%

Bear Stearns
17.60%

M. E. Allson
5.89%% Siebert Brandford Shank
Apex Pryor
Securities 21.36%
5.77%

Water System Revenue Bonds, Series 2002-A

Bond Designations
Proportion of
Firm Designations ($) Designation Dollars
Senior Manager
Morgan Stanley $204,731.56 43.90%

Co-Senior Managers
Siebert Brandford Shank $99,625.00 21.36%

Co-Managers
M. E. Allson $27,455.00 5.89%
Apex Pryor Securities $26,916.25 5.77%
Bear Stearns $82,082.50 17.60%
Morgan Keegan $25,545.93 5.48%
" Total Designations $466,356.24 100.00%
MorganStanley