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.
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.
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.
On May 17, 2022, Loop Capital Markets served as a co-manager on a 5-tranche, $6 billion senior unsecured notes offering for UnitedHealth Group Inc. The bonds are rated A3/A+/A across 5-, 7-, 10-, 30- and 40-year tranches.
Use of proceeds are earmarked for general corporate purposes which may include refinancing short-term borrowings, working capital, redeeming, repurchasing or repaying outstanding securities.
On May 10, 2022, Loop Capital Markets served as a co-manager on a two-tranche $700 million FMB offering for Public Service Company of Colorado. The bonds are rated A1/A/A+ across 10- and 30-year tranches.
Use of proceeds are earmarked to help fund the repayment or redemption of the company’s outstanding long-term debt and for other general corporate purposes.
On May 10, 2022, Loop Capital Markets served as a co-manager on a $750 million senior unsecured notes offering for KKR Group Finance Co. XII LLC. The 10-year bond is rated A/A.
Use of proceeds are earmarked for general corporate purposes.
On May 10, 2022, Loop Capital Markets mandated as an active joint-lead manager on a $500 million senior preferred stock offering for Deutsche Bank AG – New York. The 3-year offering is rated A2/A-/A-.
Use of proceeds are earmarked for general corporate purposes.
On May 10, 2022, Loop Capital Markets served as a co-manager on a two-tranche $1.8 billion senior unsecured notes offering for Caterpillar Financial Services Corporation. The bonds are rated A2/A- across 2- and 3-year tranches.
Use of proceeds are earmarked for general corporate purposes.
On May 10, 2022, Loop Capital Markets served as a co-manager on a $400 million senior unsecured notes offering for Piedmont Natural Gas Company, Inc. The 30-year bond is rated A3/BBB+.
Use of proceeds are earmarked to pay down a portion of outstanding intercompany short- term debt under a money-pool borrowing arrangement with Duke Energy Corporation and for general corporate purposes.
On May 5, 2022, Loop Capital Markets served as a co-manager on a two-tranche $1.5 billion senior unsecured notes offering for QUALCOMM Inc. The bonds are rated A2/A across 10- and 30-year tranches.
Use of proceeds are earmarked to repay at maturity $1.5 billion of outstanding fixed-rate 3.000% notes due May 20, 2022 and the excess, if any, for general corporate purposes.
