On November 16, 2022, Loop Capital Markets served as Bookrunning Senior Manager on Ohio Water Development Authority’s ( “OWDA”) $150 million Drinking Water Assistance Fund (“DWAF”) Revenue Bonds, Series 2022A (Sustainability Bonds) (the “Bonds”). The Bonds are rated Aaa (Stable) by Moody’s and AAA (Stable) by S&P. The Bonds were classified as Sustainability Bonds with a Second Party Opinion from Kestrel Verifiers. Proceeds from the transaction will fund lending to local government agencies in Ohio for water and sewer projects.
Loop Capital Markets assisted OWDA in creating a comprehensive electronic investor roadshow for the transaction. 17 investors viewed the roadshow between the release of the preliminary official statement and pricing. The Firm’s banking team compiled an investor analysis that helped identify underrepresented investors by cross referencing with holders of certain categories. Throughout the pre-marketing process, the Firm provided OWDA with investor feedback, including investors expected to place orders and the rationale from non-participating accounts.
Strong market dynamics including strong investor reads from pre-marketing, pricing was accelerated by one day. 47 institutional accounts participated in the transaction with $1.4 billion in priority orders resulting in 11.6x oversubscription. The Firm generated $355 million of orders in aggregate from nine ESG bond funds. Given the robust results of the order period, the Firm was able to tighten spreads by up to 25 bps between pre-marketing levels and final pricing. Of the accounts that remained following adjustments, 29 investors were new to the DWAF credit and 13 investors were new to OWDA. Due to strong demand, the transaction was upsized by $25 million.