Loop Capital Markets Serves as Joint Bookrunner for the City of Atlanta’s $546.420 Million GARB and PFC Series 2022 Bonds

On June 8, 2022, Loop Capital Markets (the “Firm”) served as the joint bookrunner for the city of Atlanta, Georgia’s (the “City”) $382.370 million Airport General Revenue Bonds, Series 2022AB (“Series 2022AB GARBs”) and the City’s $164.050 million Airport Passenger Facility Charge and Subordinate Lien General Revenue Bonds, Series 2022CD (“Series 2022CD PFC Bonds” and together with the Series 2022AB GARBs, the “Bonds”). All of the Bonds were rated Aa3 (Stable) / AA- (Stable) by Moody’s and Fitch, respectively.

The Bonds were issued to finance portions of the 2022 Project, which is comprised of new money projects related to the City of Atlanta’s 2026 Capital Plan (including renovations to runways, terminal, parking facilities and supporting infrastructure). The Series 2022AB GARBs had maturities from 2023 through 2052 while the Series 2022CD PFC Bonds had maturities from 2026-2042.

The Firm provided both superior banking coverage in anticipation of the financing (mandated for senior positions on consecutive GARB financings) and exceptional sales efforts during pre-marketing and marketing during a volatile pricing period. Benchmark tax-exempt and taxable rates rose considerably during the days leading up to pricing in anticipation of May’s CPI release on Friday, June 10. In total, the issue was 2.1x oversubscribed with heavy demand flow in the front end. MMD rose 10 bps, but despite the volatility, the Firm and the other senior manager were able to underwrite at or near pre-pricing levels for the AMT bonds and for some maturities of the Non-AMT bonds.

Across all series, over $44 million of priority orders were generated by the Firm. Serving as joint bookrunner, the Firm was allotted $11.4 million bonds across the 4 series. At the verbal award, the senior managers agreed to underwrite the offering with approximately $180 million in unsold balances. By end of day, the underwriting syndicate committed capital to inventory $39 million of bonds in certain maturities from 2028 to 2047. Undeterred by the daunting and volatile market, the Firm was willing to contribute a significant amount of capital on behalf of the issuer. Despite extremely difficult and volatile markets that saw interest rates increase by more than 60 bp on certain maturities, as 40 year inflation highs and a 75 bp increase by the Federal Reserve negatively impacted the market as well.

Loop Capital Markets as co-manager on $500 million high yield senior unsecured notes offering for Advanced Drainage Systems Inc.

On June 2, 2022, Loop Capital Markets served as a co-manager on a $500 million high yield senior unsecured notes offering for Advanced Drainage Systems Inc. The 8-year bond is rated Ba2/B+.

Use of proceeds are earmarked to repay the full outstanding borrowings under its senior revolving credit facility, and the remainder for general corporate purposes.

Loop Capital Markets as co-manager on $750 million senior unsecured notes offering for Jackson Financial Inc.

On June 2, 2022, Loop Capital Markets served as a co-manager on a two-tranche, $750 million senior unsecured notes offering for Jackson Financial Inc. The bonds are rated Baa2/BBB/BBB across 5- and 10-year tranches.

Use of proceeds are earmarked to repay approximately $750 million of borrowings under a delayed draw term loan facility.

 

Loop Capital Markets as senior co-manager on $500 million senior unsecured notes offering for Baltimore Gas and Electric Co.

On June 1, 2022, Loop Capital Markets served as a senior co-manager on a $500 million senior unsecured notes offering for Baltimore Gas and Electric Co. The 30-year bond is rated A3/A/A.

Use of proceeds are earmarked to repay certain outstanding commercial paper obligations, redeem outstanding notes and for general corporate purposes.

Loop Capital Markets as co-manager on $3 billion senior unsecured euro notes offering for Visa Inc.

On May 24, 2022, Loop Capital Markets served as a co-manager on a 3-tranche, $3 billion senior unsecured euro notes offering for Visa Inc. The bonds are rated Aa3/AA- across 4-, 7- and 12-year tranches.

Use of proceeds are earmarked for general corporate purposes and refinancing of existing indebtedness.

Loop Capital Markets as co-manager on $1.3 billion First Mortgage Bond (FMB) offering for Southern California Edison Co.

On May 18, 2022, Loop Capital Markets served as a co-manager on a 3-tranche, $1.3 billion FMB offering for Southern California Edison Co. The bonds are rated A3/A- across 3-, 5- and 30-year tranches.

Use of proceeds are earmarked to fund the payment of wildfire claims above the amount of expected insurance proceeds, to repay commercial paper borrowings that were used to fund the payment of such wildfire claims and for general corporate purposes.

Loop Capital Markets as co-manager on $500 million senior unsecured notes offering for Church & Dwight Co., Inc.

On May 18, 2022, Loop Capital Markets served as a co-manager on a $500 million senior unsecured notes offering for Church & Dwight Co., Inc. The 30-year bond is rated A3/BBB-.

Use of proceeds are earmarked to repay at maturity all of the outstanding August and October 2022 Notes.

Loop Capital Markets Serves as Senior Manager on Princeton University’s $300 Million Taxable Bonds, Series 2022

On May 17, 2022, Loop Capital Markets (“Loop” or the “Firm”) served as Senior Manager on Princeton University’s (the “University”) $300 million Taxable Bonds, Series 2022 (Corporate CUSIP). The Bonds were rated Aaa/AAA by Moody’s and S&P. The Firm also served as Co-Senior Manager on the University’s tax-exempt issuance through the New Jersey Educational Facilities Authority (totaling $300MM), which priced the same day.

The University elected to issue the taxable bonds in a long-dated maturity and issue the tax-exempt bonds in 5-year and 10-year maturities, and Loop assisted the University and its Financial Advisor to develop a Plan of Finance that best captured current market dynamics (e.g., tax-exempt-to-taxable ratios), debt management objectives, and Index Eligibility benefit. Broader Fixed Income Markets had a softer tone leading up to pricing due to concerns around inflation, slowing growth, and an increasingly hawkish FOMC, leading to investors increasingly focusing on credit quality, with greater appetite for high-grade names such as the University. Ultimately, Loop and the syndicate generated over $1 billion in orders and was able to successfully execute a transaction that resulted in a yield of 4.201% to the University.

Immediately following the release of the Preliminary Offering Memorandum, our salesforce and the syndicate actively began the pre-marketing process and contacted a broad range of prospective investors. Loop’s team compiled an investor analysis identifying the University’s top corporate buyers and targeting the top national higher education taxable bond holders. The Firm also facilitated a one-on-one call with an existing investor and the University that led to a large order which helped drive leverage in the order book.

A total of 57 accounts participated in the transaction, resulting in over $1 billion of orders, or 3.5x oversubscription. Participating accounts included a variety of investor types, including Insurance Companies, Bond Funds, Prop/Trading Accounts, Money Managers, Investment Advisors, ETFs and Banks. The transaction also had a strong reception from International Investors. The Firm targeted Insurance Companies during pre-marketing as likely to participate strongly in the transaction and these investors ultimately composed 43% of the initial order book. Due to strong subscription levels, the Firm was able to tighten spreads by 10 basis points to achieve a final spread of +100 bps.

Loop Capital Markets as co-manager on $600 million senior unsecured notes offering for Motorola Solutions, Inc.

On May 17, 2022, Loop Capital Markets served as a co-manager on a $600 million senior unsecured notes offering for Motorola Solutions, Inc. The 10-year bond is rated Baa3/BBB+/BBB-.

Use of proceeds are earmarked to repurchase the 2024 Notes that are tendered in the Tender Offer and to pay related fees and expenses and for general corporate purposes.

Loop Capital Markets as co-manager on $4 billion senior unsecured fixed/floating rate notes offering for Citigroup, Inc.

On May 17, 2022, Loop Capital Markets served as a co-manager on a two-tranche $4 billion senior unsecured fixed/floating rate notes offering for Citigroup, Inc. The bonds are rated A3/BBB+/A across 6- and 11-year tranches.

Use of proceeds are earmarked for general corporate purposes.