Deals 07/14/2021

Loop Capital Markets Serves as Bookrunning Senior Manager for New York City Transitional Finance Authority (“NYC TFA”) $582.820MM Building Aid Revenue Bonds, Fiscal 2022 Series S-1, Subseries S-1A (Tax-Exempt)

On July 14, 2021, Loop Capital Markets served as senior manager on the NYC TFA’s $582.8 million Building Aid Revenue Bonds, Fiscal 2022 Series S-1, Subseries S-1A (Tax-Exempt) transaction. The Bonds were rated Aa3/AA/AA by Moody’s, S&P and Fitch, respectively. Bond proceeds were used to refund all or a portion of NYC TFA’s outstanding bonds to achieve debt service savings. In addition, the $230.2 million Fiscal 2022 Series S-1, Subseries S-1B Bonds (Taxable) were sold competitively on the same day.

The transaction was the second-largest negotiated tax-exempt transaction of the week, with a start of week calendar for negotiated transactions totaling $8.0 billion while competitive transactions totaled $2.3 billion; the expected total weekly municipal volume of $10.3 billion was $4.1 billion above the year-to-date average. Treasuries were volatile as the 10-year rate rose by 7 bps from 1.34% to 1.41% before rallying back down to 1.34% during the Retail Order Period (“ROP”) and Institutional Order Period (“IOP”).

Loop Capital assisted the City in developing a comprehensive internet roadshow, primarily aimed at addressing concerns over the impact on State Building Aid resulting from the Coronavirus pandemic. The roadshow was ultimately viewed by 75 research analysts and investors.

Loop Capital Markets conducted a two-day ROP that generated $398.0 million in orders on Day 1 and $468.8 million by the end of Day 2. The Firm submitted $460.2 million in orders over the two days. After the ROP, several maturities were closed and $301.2 million were offered for the IOP. Total orders during the ROP and IOP were $1.7 billion, and the transaction was oversubscribed by 2.9x prior to the repricing. During the repricing discussion, 11 maturities were bumped from 1 to 4 bps. Ultimately, 65 professional retail and institutional investors participated in the deal, primarily consisting of Bond Funds and SMAs. Overall, the $813.0 million Fiscal 2022 Series S-1 tax-exempt and taxable transaction produced $216.0 million, or 22.59%, of  PV savings.