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1.
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Can anyone bid for offerings?
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Institutional Investors who have been approved by WR Hambrecht + Co or
an offering joint manager may participate. If you have questions about
your eligibility, contact us at OpenBook@wrhambrecht.com.
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2.
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Are auctions open to non-U.S. participants?
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Yes, if foreign participants are permitted to participate in a particular
offering and eligible in their home markets to open accounts with U.S.
broker-dealers and to purchase U.S. registered bonds, or if the investor
has an account at a non-U.S. broker-dealer that is participating as an
underwriter in the transaction. If you have questions about your eligibility,
contact us at OpenBook@wrhambrecht.com.
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3.
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How do I open an account to participate in OpenBook?
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Visit the Open Account
page for instructions on how to participate in OpenBook auctions.
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4.
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Where can investors find information about upcoming
OpenBook auctions?
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Registered participants will be notified of upcoming auctions electronically.
You may also find information about upcoming auctions on the OpenBook
Homepage.
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5.
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How do investors prepare to bid in OpenBook auctions?
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Investors must register in advance of an auction. Upon receipt and approval
of required forms, WRH+Co will send the investor a User ID and password.
A prospectus describing the securities being offered will be made available
on the OpenBook Homepage and should be read before
making a decision to bid. Visit the Open
Account page for more information about opening an account.
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6.
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How do investors log into OpenBook?
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Investors with a User ID and password may log into an auction by clicking
on View Prospectus & Enter Auction from the OpenBook
Homepage. Next, click on "Click Here to Enter Auction". This link
leads to the login page where you can enter your User ID and password.
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7.
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How are transactions settled?
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For each auction, one of the joint managers will be selected to clear
and settle the offering.
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8.
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What terms are set before an auction begins?
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The issuer sets the following, which are announced before an auction:
- A Deal size
- A benchmark Treasury bond
- A minimum and maximum acceptable bid spread over the benchmark Treasury
bond rate
- A maximum for the benchmark Treasury bond rate
- A maximum bid size per investor
- A protected spread range
- A maturity
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9.
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What is the benchmark Treasury?
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The benchmark Treasury is a chosen reference U.S. Treasury security
of comparable maturity to the bonds being auctioned. The benchmark Treasury
rate will be used to price the bond after the auction.
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10.
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What is the "spread over the benchmark Treasury rate?"
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The spread over the benchmark Treasury rate is the differential in basis
points between the Treasury rate and the rate on a particular bond.
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11.
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Do investors need to download special software to
participate?
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No, as long as their computer is equipped with a standard web browser
such as Netscape Navigator™ 4.06 or higher or Microsoft Internet
Explorer™ 4.0 or higher, with javascript and cookies enabled. The
monitor resolution should be set to a minimum of 800x600 for optimum
readability.
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12.
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Can an investor's Internet connection affect OpenBook
participation?
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System response times may vary due to a variety of factors, including
but not limited to high Internet traffic and local Internet service provider
problems.
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13.
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How can investors be sure that their bid is secure?
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OpenBook uses the same SSL web encryption technology that is used to
protect online banking transactions. If you have further questions about
transaction security and technology, notify us at OpenBook@wrhambrecht.com
and we will be pleased to discuss the relevant issues.
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14.
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How much does it cost to use OpenBook?
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Investors pay no fees and no commissions for use of the OpenBook Bond
Auction process. As in other offerings, the underwriter is compensated
through a discount in purchasing the bonds from the issuer.
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