On February 8, 2022, Loop Capital Markets served as the Senior Manager on San Diego County Water Authority’s (the “Water Authority”) $170 million Water Revenue Bonds, Series 2022A (the “Bonds”). The Bonds were rated Aa2 (Stable) / AAA (Stable) / AA+ (Stable) by Moody’s, S&P, and Fitch, respectively.
Bond proceeds were used to finance a portion of the design, acquisition and construction of various capital projects in furtherance of the Water Authority’s Capital Improvement Program. The Bonds had a maturity structure, comprised of serial maturities from 2023-2042 and term bonds in 2047 and 2052. Serials structured with 5% coupons from 2023 to 2037 and 4% coupons in 2038 and thereafter while the 2047 and 2052 term bonds both had a 5% coupon, all with a 10-year call.
The Firm assisted the Water Authority in developing a comprehensive internet roadshow, primarily aimed at highlighting its credit and financial strength, progress with water supply diversification and water conservation efforts to address the drought and continued success in operating through COVID-19 among other things. The roadshow was ultimately viewed by 29 research analysts and investors. The Firm’s banking team, led by our dedicated credit and rating agency specialist, also worked very closely with the Water Authority to help develop a clear and effective rating agency presentation, which resulted in a positive change from a negative to a stable outlook from S&P.
Following the release of the POS and investor roadshow, the Firm’s salesforce actively began the pre-marketing process and contacted a broad range of prospective accounts. We also helped setup a one-on-one virtual meeting with an investor to help address credit questions which resulted in the investor putting in over $85 million in orders. The Firm was able to bring in orders from 27 new investors who were not current holders of the Water Authority’s debt. The Firm’s marketing efforts resulted in over $756 million in orders from 48 investors in total. Ultimately, the Firm successfully priced the Bonds in a challenging market characterized by heightened volatility, tightening muni market liquidity, and MMD cuts of up to 5 bps across the curve. The All-In TIC for the transaction was 3.08%.
NEW YORK – December 13, 2021 – JLC Infrastructure welcomed Governor Kathy Hochul’s announcement that the Port Authority of New York and New Jersey has reached a revised agreement with The New Terminal One (NTO) – a consortium of which includes JLC as a member – to build a 2.4 million square foot state-of-the-art new international terminal that will anchor the south side of John F. Kennedy International Airport. Subject to Port Authority’s Board approval this week, the Port Authority will finalize and enter into a lease agreement with NTO for the construction and operation of the new terminal. The terminal will be privately financed by the NTO consortium, including financial partners JLC Infrastructure, Carlyle and Ullico. A joint venture of Munich Airport International and CAG Holdings is the technical services partner to the consortium. The terminal will be constructed by a design build team led by AECOM Tishman, which has managed construction of some of the world’s most iconic buildings, and Gensler, a leading global design and architecture firm.
“Governor Hochul, Port Executive Director Rick Cotton and the entire Port team worked tirelessly to make this project happen because they are committed to providing real opportunities for all New Yorkers,” said Jim Reynolds, co-founder and managing partner of JLC Infrastructure. “The New Terminal One has shifted the paradigm for public-private partnerships by engaging the local community to deliver a world-class facility. It will serve as a model for large infrastructure projects across the country.”
Construction of the project is expected to begin in mid-2022 and the first gates are scheduled to open in 2026. The New Terminal One will be built in phases, with full completion anticipated in approximately 2030. The New Terminal One will be a 23-gate, state-of-the-art terminal. Sustainably designed and future focused, the terminal will feature expansive, naturally-lit, public spaces, cutting edge technology, and an array of amenities, all designed to enhance the customer experience and compete with some of the highest-rated airport terminals in the world. The terminal will have more than 300,000 square feet of dining, retail, lounges, and recreational space.
Earvin “Magic” Johnson, co-founder of JLC Infrastructure said, “The New Terminal One project is another example of JLC’s core investment philosophy of investing in critical infrastructure projects that are good for our investors while also fostering economic growth by creating job opportunities in the communities that the projects serve. We are committed to exceeding the goal of 30% Minority and Women Owned Business Enterprises participation in the project.” To date, NTO has contracted with 71 MWBE firms and paid them more than $46 million for delivering key engineering, planning, and design work.
About JLC Infrastructure
JLC Infrastructure is an investor and asset management firm focused on the sustainable energy, utilities, transportation and social infrastructure sectors in the U.S. US public-private partnership projects and public infrastructure assets are core components of JLC’s investment strategy. The firm was formed in 2015 by Earvin “Magic” Johnson of Magic Johnson Enterprises and Jim Reynolds of Loop Capital. JLC has a broad network of long-standing relationships with municipalities, governments, infrastructure companies, strategic partners, advisors and financing providers throughout the country and seeks to invest in critical infrastructure projects that provide long term benefits to the communities they serve. For more information, please visit JLC’s website.
