Deals
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04/12/2024
On April 25, 2023, Loop Capital Markets served as the Book Running Senior Manager for the New York State Environmental Facilities Corporation (“Corporation”) for its $150.96 million State Revolving Funds Revenue Bonds, Series 2023A (2010 MFI) (Green Bonds). The bonds are rated Aaa by Moody’s, AAA by S&P and AAA by Fitch with a stable outlook from all three rating agencies.
The Bonds were issued to currently refund $171.09 million of outstanding Series 2012B, 2012E and 2013B Bonds. The refunding produced $15.9 million or 9.32% of PV savings and an All-in-TIC at 3.25%. A net roadshow was produced to detail the credit highlights, legal protections inherent in the structure and the financial strength of the Corporation. The net roadshow was ultimately viewed by 52 investors.
The bond sale period was comprised of a one day of Retail Order Period (“ROP”) on Monday, April 24, followed by an Institutional Order Period (“IOP”) on Tuesday, April 25. At the end of the ROP, there were $618.3 million of retail orders, approx. 4.1x oversubscription. After the ROP, the Corporation entered the market with $75.7 million of bonds offered for the IOP due to the 50% allocation rule. At the end of the IOP, there were $342.7 million of institutional orders. Loop Capital’s salesforce worked diligently to produce superior results and generated total of $918.2 million from 59 accounts. Subscription levels for all maturities ranged from anywhere between 0.6x and 16.7x, with overall subscription level of 6.1x. Due to strong subscription levels, the Firm was able to lower yields by 2 to 15 bps going from retail to institutional order period. The transaction was priced during volatile market conditions with the Fed having increased the Fed Funds rate by 50 bps in 2023 which was preceded by 425 bps of increases in 2022. Loop Capital underwrote $1.7 million of unsold bonds to support the transaction.
