Loop Capital Markets Serves as Sole Manager for Jefferson Union High School District’s $64.945 Million General Obligation Bonds, 2020 Election (Measure Z), Series A and 2023 General Obligation Refunding Bonds

On May 17, 2023, Loop Capital Markets served as Sole Manager for Jefferson Union High School District’s (San Mateo County, CA) $42.5 million General Obligation Bonds, 2020 Election (Measure Z), Series A (“2020A Bonds”) and $22.4 million 2023 General Obligation Refunding Bonds (“2023 Refunding Bonds”) (collectively, the “Bonds”) rated AA- by S&P.

The 2020A Bonds’ proceeds will be applied to finance school facility improvements, authorized by District voters at an election held in November 2020 (Measure Z). The 2023 Refunding Bonds’ proceeds will be applied to refinance on a current basis the District’s General Obligation Bonds, 2012 Election, Series A (issued in 2013). Our bankers worked closely with the District’s Municipal Advisor to tailor each series’ amortizations to achieve the District’s tax rate objectives for the two, separate underlying Bond Authorizations.

To assist in the marketing effort, our banking team researched the existing top reporting holders of the District’s outstanding GO Bonds, as well as other top reporting holders of California K-12 GO Bonds. Loop’s sales force generated over $367 million in orders from 39 unique accounts (5.7x oversubscription). This included 35 new investors (not previously reporting holders of the District’s GO Bonds) and four repeat buyers. Despite large “cuts” (increases) in the MMD Index on the day of pricing, ranging from 4-12 basis points, our desk was able to leverage the size and diversity of the order book to tighten spreads by three to seven basis points across the curve. Ultimately, the new money 2022A Bonds achieved an all-in TIC of 3.669%, and the 2023 Refunding Bonds generated over $1.5 million of gross taxpayer savings ($1.2 million present value, or 4.67% NPV).