Deals 12/07/2021

Loop Capital Markets served as Left Bookrunning Senior Manager and Dealer-Manager for the Tender and Bond Exchange for the $1.67 Billion City of Chicago GO and Sales Tax Securitization Corporation Transactions

From December 7-9, 2021,  Loop Capital Markets priced $666 million of City of Chicago (“City”) General Obligation (“GO”) Bonds, Series 2021A and Series 2021B (Exchange), and $1 billion Sales Tax Securitization Corporation (“STSC”) Second Lien Sales Tax Securitization Bonds, Series 2021A and Taxable Series 2021B.

Loop Capital Markets served as dealer-manager for the City’s tender or exchange of select GO and Motor Fuel Tax (“MFT”) Bonds. Ultimately, investors tendered $665 million of GO/MFT Bonds, and exchanged $210 million of GO Bonds, which amounted to more than 20% of the candidates. This represented one of the largest tender and exchange conducted in the municipal market to-date.

The Firm worked with the City and its financial advisors to craft the rating agency presentation resulting in the removal of negative outlooks across these credits. Ultimately, the GO lien was rated BBB+ (Stable)/BBB- (Stable)/A (Stable) (S/F/K), and the STSC Second Lien was rated AA- (Stable)/AA- (Stable)/AA+ (Stable) (S/F/K).   An investor presentation for each financing generated 57 investor views for the GO Bonds and 75 investor views for the STSC Bonds. Loop Capital Markets organized a live virtual investor roadshow attended by 27 investors supplemented by 12 one-on-one investor calls with key accounts.   73 unique investors participated in the transaction including more than $200 million of orders on behalf of European insurance companies.

These financings generated upfront debt service savings for the City to create budgetary relief of $232 million in fiscal year 2021 with no out-year debt service dissavings.  The financing achieved All-In TIC of 2.748%. In support of these financings, the Firm underwrote $82 million of unsold balances of the transactions.