Deals 01/30/2020

Loop Capital Markets Serves as Bookrunning Senior Manager on Howard University’s $146.900 Million Taxable Bonds, Series 2020

On January 30, 2020, Howard University sold its $146.900 million Taxable Bonds, Series 2020, with Loop Capital Markets as bookrunning senior manager. The Bonds had underlying ratings of BBB- (Stable) / BBB- (Stable) by S&P and Fitch, respectively, with an insured rating of AA (Stable) by S&P on select maturities. This was the University’s first public offering since 2011 and bond proceeds were used to fix-out $143.205 million of the Series 2016 variable rate demand bonds.

Loop Capital Markets developed a structure that accelerated savings and provided upfront budgetary relief to the University. The Firm helped develop a comprehensive strategy that resulted in the University attaining investment grade ratings. In addition, the Firm worked with the University to remove restrictive bond covenants and lowered the liquidity reserve. The Firm secured a robust order book and as a result, the spreads to the applicable benchmarks were tightened. A variety of investors participated in the financing, including Bond Funds, Broker/Dealers, Hedge Funds, Insurance Companies, Money Managers, Prop/Trading Accounts and SMAs. Ultimately, the University achieved a low True Interest Cost of 2.896% with NPV savings of approximately $24.351 million or 17.004% of refunded par.