Deals 07/21/2021

Loop Capital Markets Serves as Senior Manager on Harris County Flood Control District’s Improvement Refunding Bonds, Series 2021A

On July 21, 2021, Loop Capital Markets served as the Book Running Senior Manager for Harris County Flood Control District’s $256.455 million Improvement Refunding Bonds, Series 2021A. The Bonds were rated Aaa (Stable) / AAA (Stable) by Moody’s and Fitch, respectively.

Bond proceeds were used to refund $312 million of outstanding Flood Control Limited Tax General Obligation Commercial Paper Notes, Series H. During the pre-marketing process, the Firm collected reverse inquiries for couponing during pre-marketing resulting in the use of 1%, 3%, 4% and 5% coupons.

On the day of pricing, fixed-income markets sold off with longer maturities of MMD cut by up to four basis points. Despite a challenging market, the syndicate generated $545 million of priority orders after adjustments. 37 institutional accounts participated resulting in 2.1x oversubscription. Given the high-grade nature of the credit, there was strong interest from SMAs, Bank Trusts and Private Wealth Managers. Due to strong interest, the Firm has able to tighten some maturities up to eight basis points.

Yields were up to 25 basis points tighter than the last time this credit came to market in September 2020. While $46.470 million of bonds were unsold at the end of the order period, the balance was reduced by making structural changes, including adjusting coupons and terming up serial maturities. Ultimately, $23.590 million of bonds were underwritten by Loop Capital Markets.

All in all, the County secured a low True Interest Cost of 2.305%.