On June 9, 2021, Loop Capital Markets remarketed on behalf of Williams College (the “College”) the $50.470 million Massachusetts Development Finance Agency Variable Rate Revenue Bonds, Williams College Issue, Series N (2011). The Bonds were rated Aa1 / AA+ by Moody’s and S&P, respectively. The College elected to remarket the Bonds into a new 4-year mandatory hard put to (i) lower interest cost while maintaining optionality within the portfolio and (ii) retain an optimal debt mix. Market conditions were favorable with 12 straight weeks of positive municipal fund flows, heightened reinvestment and redemption cash in June compared to prior months, and the 4-year MMD 11 basis points (“bps”) lower than the previous remarketing in February 2021.
Upon release of the Preliminary Remarketing Circular, the Firm began the pre-marketing process and conducted an investor analysis, identifying 13 underrepresented investors and Massachusetts-domiciled buyers as potential investor targets. The Firm received orders from eight existing holders, three underrepresented investors, four Massachusetts-domiciled investors and nine top higher education institutional investors. Due to strong investor subscription with $725 million in going away orders from 20 accounts, the College achieved one of the lowest spreads for higher education put bond financings at 11 bps, a 14 bp reduction compared to the College’s Series I remarketing in February at 25 bps.