On February 1-2, 2022, Loop Capital Markets served as the Senior Manager for LAWA’s $469.8 million Subordinate Revenue and Refunding Revenue Bonds, 2022 Series C ($307.0 million Private Activity/AMT), D ($101.5 million Private Activity/Non-AMT), E ($20.2 million Governmental Purpose/Non-AMT) and F ($40.9 million Federally Taxable) (the “Bonds”). The Bonds were rated Aa3 (Stable) / AA- (Stable) / AA- (Stable) by Moody’s, S&P, and Fitch, respectively.
The Firm successfully priced both tax-exempt and taxable tranches in a challenging market characterized by heightened volatility, tightening municipal market liquidity, and elevated issuance of airport paper issued since January 1, 2022. The day of pricing, however, saw significant improvement in muni/Treasury ratios (and demand for munis) as MMD remained stable and rallied up to 5 bps, while Treasuries remained flat. The Firm’s robust marketing efforts resulted in over $5 billion in orders from 124 unique investors across the tax-exempt and taxable series. Bond Funds were the largest component of orders of both the tax-exempt and taxable series.
The maturity structure of the Bonds, comprised of serial maturities through 2024 and term bonds through 2049, contained various customized coupons to match demand (all with a 10-year call). The all-in TIC for the transaction was 2.86%.
Ultimately, the Firm was able to manage a complex finance plan which involved multiple constraints and financing goals for each component including new money, refunding and restructuring. The plan allocated debt service for 59 individual projects among 5 cost centers, each with separate targeted average lives. LAWA was also able to maintain cost stability as result of the level debt service new money structure and the $40 million of cash flow relief generated by the refunding/restructuring.
On February 2, 2022, Loop Capital Markets acted as a co-manager on a $450 million fixed rate reset non-cumulative perpetual preferred stock offering for U.S. Bancorp. The securities are rated Baa1/BBB+/BBB+.
Use of proceeds are earmarked to fund a portion of the cash consideration in connection with the Acquisition of MUFG Union Bank, N.A., for general corporate purposes, and to temporarily invest to reduce short-term indebtedness. After the closing of the Acquisition, U.S. Bancorp will merge Union Bank with and into U.S. Bank National Association, the company’s wholly owned subsidiary.
On February 2, 2022, Loop Capital Markets was mandated as an active joint-bookrunner on a three-tranche, $1.5 billion senior unsecured fixed/floating rate notes offering for State Street Corp. The bonds are rated A1 /A/AA- across 4-year, 6-year, and 11-year tranches.
Use of proceeds are earmarked for general corporate purposes, which may include, working capital, capital expenditures, investments in or loans to subsidiaries, refinancing of outstanding indebtedness, refinancing of outstanding capital securities, share repurchases, dividends, funding potential future acquisitions and satisfaction of other obligations.
On February 1, 2022 Loop Capital Markets served as a co-manager on a $250 million senior unsecured convertible notes offering for Xometry, Inc. The notes have a 5-year tenor.
Use of proceeds are earmarked for general corporate purposes, working capital, and potential acquisitions or strategic investments in complementary businesses, products, services, or technologies.
On February 1, 2022, Loop Capital Markets acted as a co-manager on a five-tranche, $9.0 billion senior unsecured fixed/floating rate medium-term Series N notes offering for Bank of America Corp. The bonds are rated A2/A-/AA- across 3-, 5- and 11-year tranches.
Use of proceeds are earmarked general corporate purposes, which may include working capital, funding of investments, extensions of credit, acquisitions, and reductions, redemptions, repayments or repurchases of outstanding indebtedness or equity securities.
On January 31, 2022, Loop Capital Markets acted as a co-manager on a $300 million senior unsecured medium-term, Series Q notes offering for PACCAR Financial Corp. The 5-year bond is rated A1/A+.
Use of proceeds are earmarked for general corporate purposes.
On January 27, 2022, Loop Capital Markets served as a co-manager on a $500 million senior secured notes offering for Embecta Corp. The 8-year bond is rated B3/B+.
Use of proceeds are earmarked to finance the spin-off of Embecta from Becton, Dickinson and Company (“BD”), including payment of a cash distribution to BD, as well as related transaction fees and expenses, working capital, and general corporate purposes.
On January 21, 2022, Loop Capital Markets acted as a co-manager on a $550 million senior unsecured notes offering for Antares Holdings LP. The 5-year bond is rated BBB-/BBB(H).
Use of proceeds are earmarked for general corporate purposes including the repayment of any borrowings under the credit facilities.
On January 20, 2022, Loop Capital Markets mandates as an active co-manager on a three tranche $1.6 billion ABS offering for Verizon Communications, Inc. This was the inaugural use of VZ’s SEC registered ABS Master Trust. The VZMT 2022-1 Class A notes are rated Aaa(sf)/AAA(sf), 2022-2 Class A rated Aaa(sf)/AAA(sf), and 2022-2 Class B rated Aa2(sf)/AA+(sf) across 5- and 6-year tranches.
Use of proceeds are earmarked for general corporate purposes, to acquire Device Payment Plan Agreements from the originators and the additional transferor, to make the initial deposit in the reserve account, to redeem other credit extensions, and to make payments of principal on any other credit extensions.
On January 19, 2022, Loop Capital Markets mandated as a joint-lead manager on a $2.3 billion senior unsecured global medium-term bond offering for Morgan Stanley. The 6-year bond is rated A1/BBB+/A.
Use of proceeds are earmarked for general corporate purposes.
