Deals 03/10/2021

Loop Capital Markets serves as Senior Manager for the New York City Municipal Water Finance Authority’s (“NYW”) $574.8 million Second Resolution Revenue Bonds, Fiscal 2021 Series DD

The New York City Municipal Water Finance Authority (“NYW”) priced $574.8 million of Second Resolution Revenue Bonds, Fiscal 2021 Series DD refunding bonds on Wednesday, March 10, 2021 with Loop Capital Markets serving as senior manager.  The bond sale period comprised of a one-day retail order period (“ROP”) on Tuesday, March 9 and an institutional order period (“IOP”) on Wednesday, March 10. The transaction was priced during volatile market conditions with the 10-year MMD having increased by 42 bps from February 10 (year-to-date low) to March 8 and was the second largest transaction for the week.

The ROP generated a record high of $990.4 million in orders for NYW, of which Loop Capital Markets submitted $958.3 million. This was a record for NYW.  After the ROP, several maturities were closed and $207.5 million was offered for the IOP. The IOP generated $3.5 billion in priority orders across a wide range of account types, including mutual funds, bank portfolios, money managers, insurance companies, and arbitrage accounts. The Firm employed a unique pricing strategy in which it held back $15 million of the 2025 maturity and $20 million of the 2029 maturity during the ROP, so that portions of those maturities sold during the ROP could also be repriced in the IOP. Final yields were reduced from the ROP by 10 to 17 bps and the Firm was able to achieve the tightest spreads for NYW. After the final repricing, NYW received $3.8 billion in orders from a broad investor base with the transaction being more than 6.7x oversubscribed. The refunding generated $185.1 million, or 25.8% PV savings, $203.3 million of cashflow savings, and a TIC of 1.21% for NYW.