Deals 11/14/2023

Loop Capital Markets Serves as Senior Manager for the State of Ohio’s $116.835 Million G.O. Highway Capital Improvement Bonds, Series Y

On November 14, 2023, Loop Capital Markets served as Senior Manager on the State of Ohio’s (the “State”) $116.835 million G.O. Highway Capital Improvements Bonds, Series Y (Full Faith and Credit/Highway User Receipts) (the “Bonds”). The Bonds were rated Aa1 (Positive) / AAA (Stable) / AAA (Stable) / AAA (Stable) by Moody’s, S&P, Fitch and Kroll, respectively. Proceeds from the transaction will fund highway capital improvements for the State.  Loop assisted the Treasurer’s office in preparing an investor presentation for institutional investors.

This transaction was the first time the Treasurer of State utilized BVAL as the benchmark for pricing its tax-exempt bonds. The transaction was primarily sponsored by SMAs, Bond Funds, Arb Accounts, and Insurance Companies with 59 institutional accounts participating.  Of particular note, 30 accounts submitted orders in excess of $5 million. Prior to adjustments, the Firm generated more than $1.6 billion in priority orders resulting in 14.0x oversubscription.  Given the strong results of the order period, the Firm was able to tighten spreads by up to 21 bps between pre-pricing and final pricing levels, which resulted in more than $625 million of orders dropping from the order book.  Final spread to BVAL ranged from negative 21 bps to plus 3 bps. These spreads were among the tightest ever achieved for this credit.