On January 7, 2021, Loop Capital Markets served as the Book Running Senior Manager for the New Jersey Economic Development Authority (the “Authority” or “NJEDA”) for its $350 million School Facilities Construction Bonds, 2021 Series QQQ (Social Bonds) (the “Bonds”). The Bonds were rated Baa1 / BBB / BBB+ by Moody’s, S&P and Fitch, respectively. The Authority designated its first School Facilities Construction Program “Social Bond” transaction based on the social benefits of ensuring inclusive and equitable quality education and promoting lifelong learning opportunities. NJ EDA intentionally came to market the first week of January due to its typically low weekly supply to take advantage of the strong technicals in the market at this time of the year with large amounts of coupon and redemption on January 1st.
NJ EDA received an All-In TIC of 3.00% for the transaction with a final maturity in 2050. The Firm’s robust marketing efforts resulted in 117 different investors participating in the transaction. Due to strong subscription levels, pricing of the Bonds tightened by up to 20 basis points in certain maturities from preliminary wire to the final pricing. The Authority’s transaction priced between 20 to 35 basis points lower in spreads than the New Jersey TTFA’s Transportation Program Bonds, Series 2020 Series AA, a comparably rated State appropriation credit, which priced on December 2, 2020.