Loop Capital Markets Serves as Joint Bookrunner on State of Illinois’ $2.5 Billion General Obligation Bonds, Series of May 2023ABCD

On April 19, 2023, Loop Capital Markets served as joint bookrunner on State of Illinois’ (the “State”) $2.5 billion General Obligation Bonds, Series of May 2023ABCD. The transaction was rated A3 (Stable) / A- (Stable) / BBB+ (Positive) by Moody’s, S&P and Fitch, respectively. Moody’s upgraded the State’s general obligation bonds from Baa1 to A3 to reflect the State’s improving governance with further growth in reserves that are at their strongest level in over a decade and increasing payments to its pension plan. Proceeds of the bonds were used to (i) fund accelerated pension benefit payments, (ii) finance capital expenditures authorized by the State’s previous capital programs and the Rebuild Illinois capital plan (iii) provide funds to finance information technology projects under the State’s previous capital programs and Rebuild Illinois and (iv) refund outstanding Series A of January 2012, Series March 2012 and Series May 2012 general obligation bonds of the State.

Due to strong investor demand, spreads tightened between 10 and 20 basis points for the Series 2023A, up to 15 basis points for Series 2023B, up to 5 basis points for 2023C and up to 13 basis points for Series 2023D. Select maturities in the 7- and 10-year range of Series 2023B, 2023C and 2023D saw interest rates increased by five basis points. Loop Capital Markets’ salesforce generated 10 priority orders from a local municipality and investment managers. The Firm assisted in reviewing the State’s rating agency and investor presentations and provided input throughout the planning process for the live investor breakfast as the Firm previously hosted an investor meeting for the State and Governor JB Pritzker in 2019. The financing generated an All-In TIC of 4.233%. The refunding generated present value savings of $102.25 million or 8.38% of the refunded par amount.