On December 2, 2021, The Illinois State Toll Highway Authority (the “Tollway”) sold the $700 million Toll Highway Senior Revenue Bonds, 2021 Series A (the “Series 2021A Bonds” or the “Bonds”) with Loop Capital Markets serving as bookrunning senior manager. The Bonds were rated Aa3 (Stable) / AA- (Stable) / AA- (Stable) by Moody’s, S&P and Fitch, respectively.
The Bonds were issued to (i) finance the costs of capital improvements to be made to the Tollway System as part of the Move Illinois Program, (ii) make a deposit to the Debt Reserve Account and (iii) pay costs of issuance in connection with the Series 2021A Bonds. The Tollway ultimately upsized the transaction from $600 million to $700 million. The Bonds were a tax-exempt financing with a final maturity of 2046 comprising of both serial and term bonds with 4% and 5% coupons and a 10-year par call.
Immediately following the release of the preliminary official statement, the Firm’s salesforce actively began pre-marketing and contacted a broad range of prospective accounts. The Firm developed an investor roadshow in conjunction with the Tollway that was viewed by 29 unique investors of which five accounts held one-on-one calls with the Tollway. Priority orders totaled $2.1 billion with 3.0x oversubscription. The transaction was primarily sponsored by bond funds followed by proprietary/trading accounts and separately managed accounts. Strong subscription levels resulted in spreads to tighten between 1 and 4 basis points between pre-pricing and repricing/final pricing. The transaction had an All-In TIC of 3.016%.