Loop Capital Markets served as joint bookrunner for a $500 million taxable financing for Harvard University on April 11th. The financing was a direct issuance of Harvard using a corporate CUSIP. The bonds were structured as a 30 year bullet, rated Aaa/AAA by Moody’s and S&P, respectively, and were priced at a spread to the 30 year Treasury plus 90 bps for a yield of 3.745%. The offering was completed in a day starting with an Indications of Interest (IOI) period in the morning with a spread of plus 105 and going directly to a launch with a spread tightening of 15 basis points to plus 90 bypassing the typical price guidance phase.
The transaction received strong subscription levels with three orders generated by Loop Capital which were from one of the largest global asset managers, an insurance company, and a hedge fund. This financing was the first component of a two-part financing from Harvard including a 10-year tax-exempt Green Bond to be issued by the University through the Massachusetts Development Finance Agency which is expected to price in early May 2022.