Deals 06/05/2025

Loop Capital Markets Served as Sole Underwriter on Iona University’s $74.815 Million Revenue Bonds, Series 2025

On June 5, 2025, Loop Capital Markets served as Sole Underwriter for Iona University’s (the “University”) $74.815 million Revenue Bonds, Series 2025 (the “Bonds”) issued through the Dormitory Authority of the State of New York (“DASNY”). The Bonds have underlying ratings of “Baa2″ (Stable) by Moody’s and “BBB” (Stable) by S&P and carry enhanced Moody’s and S&P ratings of “A1” and “AA”, respectively, based on bond insurance provided by Assured Guaranty.

Proceeds will be used to (i) finance a portion of the costs of the Series 2025 Project, which includes construction of a green space as well as renovations and improvements to various student residential buildings, residence halls, student lounges, lab infrastructure and athletic facilities, (ii) refund all of the Series 2015A Bonds, (iii) refund all of the outstanding term loan from Bank of America, N.A. to the University in the original principal amount of $15,000,000 and (iv) pay costs of issuance. The Bonds were structured as tax-exempt serial bonds maturing annually from 2026 through 2045 and a term bond maturing in 2051.

Loop’s banking team created a comprehensive electronic investor roadshow, which was viewed by 39 unique investors. The Firm’s salesforce began pre-marketing as soon as the POS and investor roadshow were released to the market on May 22nd. Throughout the pre-marketing process, the Firm provided the University investor feedback, summarizing accounts expected to place orders and the rationale from non-participating investors. The Bonds priced amid a busy issuance calendar with roughly $19 billion of expected municipal supply ($15.8 billion negotiated and $3.1 billion competitive), marking the largest week of issuance in YTD 2025. Loop’s robust marketing efforts resulted in 37 different investors participating in the transaction. Prior to adjustments, the Firm generated over $404.5 million of total orders (5.4x oversubscription). Given strong demand from buyers, Loop was able to tighten spreads by 4-19 bps for the longer dated maturities (2037-2051) between pre-marketing and final pricing levels. These pricing adjustments provided an additional $274.1k of cash flow savings to the University. Ultimately, the transaction provided the University with $2.8 million of cash flow savings over the next five fiscal years while funding $30 million of new money projects and maintaining overall positive cash flow and PV savings.