On March 31, 2022, Loop Capital Markets served as a co-manager on a 6-tranche $6.5 billion senior unsecured notes offering for Corebridge Financial, Inc. The bonds are rated Baa2/BBB+/BBB+ across 3-, 5-, 7-, 10-, 20- and 30-year tranches.
Use of proceeds from this offering, together with borrowings under the Corebridge’s 3-year and 18-month delayed draw term loan facility, are earmarked to repay the $8.3 billion promissory note previously issued by the Company to AIG.
On March 30, 2022, Loop Capital Markets served as the Book Running Senior Manager for the NYC Transitional Finance Authority’s $950 million Future Tax Secured Subordinated Bonds, Fiscal 2022 Series F, Subseries F-1. The Bonds were rated Aa1 (Stable) by Moody’s, AAA (Stable) by S&P and AAA (Stable) by Fitch. Bond proceeds will be used to finance general City capital expenditures. Additionally, $300 million of Fiscal 2022 Subseries F-2 and F-3 (Taxable) were sold competitively on the same day.
In preparation for pricing, a roadshow was created, which was viewed by 52 investors. The Firm conducted a two-day Retail Order Period (ROP) with $706 million offered on Day 1 and $750.66 million on Day 2. $212.93 million in orders were received on Day 1 and $320.30 million by the end of Day 2. After the ROP, TFA entered the market with $747.28 million of bonds offered for the Institutional Order Period (IOP). The bond market experienced a high level of volatility due to potential increase in Fed Funds Rate, ongoing geopolitical tension between Russia and Ukraine, Fed speakers’ comments, and major economic announcements. Given the overall significant New York supply over the last month, Loop Capital’s salesforce worked diligently to produce superior results and generated total institutional orders of $5.86 billion from 121 accounts. Total orders during the ROP and IOP were $6.13 billion, and the transaction was oversubscribed by 6.5x. The transaction was the third largest negotiated tax-exempt transaction of the week, with a total volume of almost $9.6 billion ($7.32 billion negotiated and $2.23 billion competitive). Due to strong subscription levels, the Firm was able to lower yields by up to 8 bps depending on the maturity.
On March 30, 2022, Loop Capital Markets was mandated as an active co-manager on a three-tranche $3 billion senior unsecured notes offering for Workday, Inc. The bonds are rated Baa2/BBB across 5-, 7-, and 10-year tranches.
Use of proceeds are earmarked for general corporate purposes which includes repayment of a Term Loan and may include repayment of Convertible Senior Notes.
On March 29, 2022, Loop Capital Markets served as a co-manager on a $550 million senior unsecured green bond offering for Welltower Inc. The 10-year bond is rated Baa1/BBB+.
Use of proceeds will be allocated to a portfolio of Eligible Green Projects and pending the allocations for such purposes, the proceeds are earmarked for general corporate purposes, including repayment of debt and investing in health care and seniors housing properties.
On March 29, 2022, Loop Capital Markets served as a co-manager on a two-tranche $2 billion senior unsecured notes offering for HP Inc. The bonds are rated Baa2/BBB across 7-, and 10-year tranches.
Use of proceeds are earmarked for general corporate purposes which may include debt repayment, debt refinancing, funding of acquisition opportunities, working capital, capital expenditures and share repurchases.
On March 24, 2022, Loop Capital Markets acted as a co-manager on a $1 billion subordinate unsecured notes offering for Paramount Global. The 40-year bond is rated Baa3/BB+/BB+.
Use of proceeds are earmarked for general corporate purposes including the possible repayment of existing indebtedness.
On March 24, 2022, Loop Capital Markets served as Sole Manager and Remarketing Agent on Texas Transportation Commission’s (the “Commission”) $300 million State Highway Fund First Tier Revenue Bonds, Series 2014-B (Variable Rate Demand Bonds). Sumitomo Mitsui provided the Standby Letter of Credit (same as the prior Series 2014B-1 Weekly-Reset VRDBs with an expiration date of October 2026) with short-term ratings of A-1 by S&P and VMIG1 by Moody’s.
The financing merged two subseries ($150 million 2014-B1 Weekly-Reset VRDBs and $150 million 2014-B2 LIBOR FRNs) into a single series ($300 million 2014-B Weekly-Reset VRDBs, which is considered a new issue for tax purposes). To affect this restructuring, investors mandatorily tendered their Subseries 2014-B1 and 2014-B2 Bonds to Loop Capital Markets, who in-turn remarketed the Bonds as the single Series 2014-B Weekly-Reset VRDBs. At the request of the Commission, the Firm’s short-term underwriting desk took over the remarketing early and remarketed the Subseries 2014B-1 Bonds during a stub period preceding the mandatory tender. The Commission wished to retain variable rate exposure in light of the rising interest rate environment in order to diversify its debt portfolio, hedge its sizeable cash position, and capture interest savings vis-à-vis a long-dated financing.
Loop Capital Markets’ short-term desk began pre-marketing the transaction immediately following the release of the remarketing memorandum. At least 35 investors were contacted across a variety of account types, including money market funds, trusts, investment advisors, SMAs, bonds funds, corporations, and state and local government investment staff. Loop Capital Markets worked with bond counsel to answer investor questions regarding the credit and liquidity agreement, resulting in many investors approving the credit, which will maximize investor participation over the life of the remarketing. Investor feedback was provided to TxDOT, including the reasoning as to why some investors didn’t approve the credit.
At least fifteen accounts participated in the inaugural remarketing resulting in 2x oversubscription. Participating accounts included a variety of investor types, including: Money Market Funds, Bond Funds, and SMAs. Immediately preceding the remarketing, SIFMA reached 49 bps given pressure from tax season and the overall municipal market selloff, which was the highest level since the market dislocation at the beginning of the COVID-19 pandemic.
On March 23, 2022, Loop Capital Markets was mandated as an active co-manager on a $1.5 billion high yield senior unsecured notes offering for Ford Motor Credit Company LLC. The 5-year bond is rated Ba2/BB+/BB+.
Use of proceeds are earmarked for general corporate purposes.
On March 22, 2022, Loop Capital Markets served as a co-manager on a $131 million follow-on stock offering (including the green shoe) for Piedmont Lithium Ltd.
Use of proceeds are earmarked for general corporate purposes, including to fund the Company’s share of the capital required to restart the operations at North American Lithium in Quebec, to fund exploration and definitive feasibility studies at Eyowaa in Ghana, to advance the Company’s merchant lithium hydroxide plant in the southeastern United States, and to continue development of the Carolina Lithium Project.
On March 22, 2022, Loop Capital Markets was mandated as an active co-manager on a $2 billion subordinated unsecured notes offering for HSBC Holdings plc. The 11-year bond is rated Baa1/BBB/A-.
Use of proceeds are earmarked for general corporate purposes and to strengthen their capital base pursuant to UK CRR.
