On March 30, 2022, Loop Capital Markets served as the Book Running Senior Manager for the NYC Transitional Finance Authority’s $950 million Future Tax Secured Subordinated Bonds, Fiscal 2022 Series F, Subseries F-1. The Bonds were rated Aa1 (Stable) by Moody’s, AAA (Stable) by S&P and AAA (Stable) by Fitch. Bond proceeds will be used to finance general City capital expenditures. Additionally, $300 million of Fiscal 2022 Subseries F-2 and F-3 (Taxable) were sold competitively on the same day.
In preparation for pricing, a roadshow was created, which was viewed by 52 investors. The Firm conducted a two-day Retail Order Period (ROP) with $706 million offered on Day 1 and $750.66 million on Day 2. $212.93 million in orders were received on Day 1 and $320.30 million by the end of Day 2. After the ROP, TFA entered the market with $747.28 million of bonds offered for the Institutional Order Period (IOP). The bond market experienced a high level of volatility due to potential increase in Fed Funds Rate, ongoing geopolitical tension between Russia and Ukraine, Fed speakers’ comments, and major economic announcements. Given the overall significant New York supply over the last month, Loop Capital’s salesforce worked diligently to produce superior results and generated total institutional orders of $5.86 billion from 121 accounts. Total orders during the ROP and IOP were $6.13 billion, and the transaction was oversubscribed by 6.5x. The transaction was the third largest negotiated tax-exempt transaction of the week, with a total volume of almost $9.6 billion ($7.32 billion negotiated and $2.23 billion competitive). Due to strong subscription levels, the Firm was able to lower yields by up to 8 bps depending on the maturity.