On November 18, 2022, Loop Capital Markets was mandated as a book-runner on a $320 million follow-on stock offering for Laureate Education, Inc.
Use of proceeds are earmarked for the selling shareholders to receive all of the net proceeds from the offering.
On November 17, 2022, Loop Capital Markets served as a co-manager on a $725 million ABS offering for Verizon Master Trust 2022-7 (VZMT 2022-7) across 5-year tranches.
Use of proceeds are earmarked for general corporate purposes.
On November 16, 2022, Loop Capital Markets served as Bookrunning Senior Manager on Ohio Water Development Authority’s ( “OWDA”) $150 million Drinking Water Assistance Fund (“DWAF”) Revenue Bonds, Series 2022A (Sustainability Bonds) (the “Bonds”). The Bonds are rated Aaa (Stable) by Moody’s and AAA (Stable) by S&P. The Bonds were classified as Sustainability Bonds with a Second Party Opinion from Kestrel Verifiers. Proceeds from the transaction will fund lending to local government agencies in Ohio for water and sewer projects.
Loop Capital Markets assisted OWDA in creating a comprehensive electronic investor roadshow for the transaction. 17 investors viewed the roadshow between the release of the preliminary official statement and pricing. The Firm’s banking team compiled an investor analysis that helped identify underrepresented investors by cross referencing with holders of certain categories. Throughout the pre-marketing process, the Firm provided OWDA with investor feedback, including investors expected to place orders and the rationale from non-participating accounts.
Strong market dynamics including strong investor reads from pre-marketing, pricing was accelerated by one day. 47 institutional accounts participated in the transaction with $1.4 billion in priority orders resulting in 11.6x oversubscription. The Firm generated $355 million of orders in aggregate from nine ESG bond funds. Given the robust results of the order period, the Firm was able to tighten spreads by up to 25 bps between pre-marketing levels and final pricing. Of the accounts that remained following adjustments, 29 investors were new to the DWAF credit and 13 investors were new to OWDA. Due to strong demand, the transaction was upsized by $25 million.
On November 15, 2022, the New York City Municipal Water Finance Authority (“NYW”) priced $750 million of Second Resolution Revenue Bonds, Fiscal 2023 Series AA, Subseries AA-1, AA-2 and AA-3 (the “Bonds”). The Bonds were rated Aa1/AA+/AA+ by Moody’s, S&P and Fitch, respectively. Bond proceeds were used to fund capital improvements, refund certain outstanding bonds and pay costs of issuance. Loop Capital assisted NYW in developing a comprehensive internet roadshow, primarily aimed at addressing the credit highlights and legal protections inherent in the structure, and the financial strength of NYW. The roadshow was viewed by 58 research analysts and investors.
The transaction was the largest negotiated transaction of the week. The Bonds priced during volatile market conditions with the Fed having raised the Fed Funds rate 375 bps in 2022. However, lower-than-expected October Consumer Price Index inflation rate on November 10 spurred a rally in the fixed income market with the ten-year Treasury and MMD decreasing by 28 bps and 12 bps, respectively. This improvement in the market increased the savings enough so the refunding component which was originally “out of the money” now met NYW’s refunding threshold. The benign Producer Price Index release on the morning of the retail order period reinforced the favorable market tone. As a result, Loop and NYW decided to accelerate the Institutional Pricing after only half day of retail order period. Ultimately, orders were placed by 85 unique accounts. The retail order period generated $445.6 million in orders, followed by an institutional order period that generated $3.3 billion in orders, resulting in at 4.6x oversubscription. Despite market volatility, NYW achieved superior pricing results. Due to strong subscription levels, the Firm was able to lower yields by 5 to 8 bps from the retail order period, and lower up to an additional 10 bps depending on the maturity in the final pricing.
The refunding of the Series 2013BB 5% coupon bonds generated $16.3 million PV savings, or 5.67%, and $32.0 million of cashflow savings for a TIC of 4.63%. Because of the overall subscription and the need for additional new money proceeds, the par amount was increased from approximately $682 million to $750 million.
On November 14, 2022, Loop Capital Markets acted as a co-manager on a $750 million senior unsecured notes offering for Caterpillar Financial Services Corporation. The 2-year bond is rated A2/A/A.
Use of proceeds are earmarked for general corporate purposes.
On November 14, 2022, Loop Capital Markets acted as a co-manager on a 2-tranche $1.2 billion senior unsecured notes offering for Thermo Fisher Scientific Inc. The bonds are rated A3/A-/BBB+ across 5- and 10-year tranches.
Use of proceeds are earmarked for general corporate purposes, to repay outstanding debt, repurchase outstanding equity securities and potential acquisitions.
On November 14, 2022, Loop Capital Markets served as a co-manager on a $400 million high yield senior unsecured Green bond offering for TransAlta Corporation. The 7-year bond is rated Ba1/BB+.
Use of proceeds are earmarked for Eligible Green Assets and to repay outstanding debt.
On November 14, 2022, Loop Capital Markets acted as a co-manager on a $430 million senior unsecured notes offering for Sabine Pass Liquefaction, LLC. The 15-year bond is rated Baa2/BBB/BBB.
Use of proceeds are earmarked for general corporate purposes and to redeem outstanding debt.
On November 14, 2022, Loop Capital Markets served as a co-manager on a $178 million follow-on stock offering (including the green shoe) for Alight, Inc.
Use of proceeds are earmarked for the selling shareholders to receive all of the net proceeds from the offering.
On November 14, 2022, Loop Capital Markets acted as a co-manager on a 2-tranche $1 billion senior unsecured notes offering for National Securities Clearing Corporation. The bonds are rated Aaa/AA+ across 2- and 5-year tranches.
Use of proceeds are earmarked for general corporate purposes and to redeem and refinance outstanding debt.
