Loop Capital Markets Serves as Bookrunning Senior Manager for the $124.080 Million Philadelphia Redevelopment City Service Agreement Revenue and Revenue Refunding Bonds, Series A, B & C of 2023

On May 16 and 17, 2023, the Philadelphia Redevelopment Authority sold its $124.080 million City Service Agreement Revenue Bonds, Series A (Neighborhood Preservation Initiative (“NPI”)) (Federally Taxable Social Bonds) (the “Series 2023A Bonds”) and Series B  of 2023 (NPI) (Tax-Exempt Social Bonds) (the “Series 2023B Bonds”) and City Service Agreement Revenue Refunding Bonds, Series C of 2023 (Neighborhood Transformation Initiative (“NTI”)) (Tax-Exempt) (the “Series 2023C Bonds, and collectively, the “Series 2023ABC Bonds” or the “Bonds”). Loop Capital Markets served as bookrunning senior manager.

The Bonds are rated A1 (Stable), A (Positive) and A (Stable) by Moody’s, S&P and Fitch, respectively. Bond proceeds were used to (i) finance certain costs of the NPI Program, including certain program-wide administrative costs, (ii) refund certain outstanding Revenue Refunding Bonds, Series 2012 (City of Philadelphia NTI) and (iii) pay costs of issuing the Series 2023ABC Bonds. The borrowing is the second transaction under the NPI Initiative and will provide $100 million in project funds. The City self-designated the Series 2023A and 2023B Bonds as Social Bonds.

The Firm reviewed the rating agency presentation and developed the investor presentation with the City and Co-Financial Advisors which was viewed by 20 investors. Throughout the pre-marketing process, the Firm provided investor feedback to the City and Co-Financial Advisors. The City and Authority received strong interest with over $234 million of priority orders or 2.9x overall subscription for the taxable series and over $86 million of priority orders or 2.0x overall subscription for the tax-exempt tranches. 20 investors ultimately participated in the taxable tranche while 10 investors participated in the tax-exempt tranches. Due to strong investor demand, the Firm was able to tighten spreads on the Series 2023A Bonds by 5-12 basis points for several maturities between the Indications of Interest and Launch periods. The Bonds had an All-In TIC of 5.09% and the refunding achieved present value savings of 2.1% of the refunded par amount.