On May 5, 2021, the State of Ohio (Treasurer of State) (the “State”) sold its $227.940 million Lease-Appropriation Bonds, Series 2021A (Mental Health and Administration Building). The Bonds were rated Aa2/AA/AA by Moody’s, S&P and Fitch, respectively.
The financing was the largest lease appropriation-backed financing the State has completed in a number of years. The financing consisted of two series of bonds to finance projects for Mental Health Facilities and Administrative Building Facilities programs. The transaction was structured with 5% coupon bonds and serial maturities ranging between 2022 and 2041 and 10-year par call. The State entered the market with strong technical, highlighted by eight straight weeks of municipal bond fund flows, lower tax-exempt benchmark rates and Muni/Treasury ratios since the State last came to market in April with its lease-appropriation bonds, and in March with its G.O. credit.
Loop’s banking team, in conjunction with the State and the Treasurer’s Office helped answer investor inquiries. In particular, Loop’s banking team worked with the State to answer numerous complex questions from the credit analyst of a major SMA account to address his inquiries regarding the State’s credit, as well as pension and OPEB funding. The investor had not previously been a significant buyer of any of the State’s lease appropriation-backed bonds. The investor placed in more than $153 million in orders, representing the second largest order placed in the transaction.
Throughout the pre-marketing process, the Firm contacted a broad range of prospective and targeted accounts and provided the State investor feedback, including investors expected to place orders and the rationale from non-participating accounts. In addition, Loop’s banking team compiled an investor analysis that helped identify and target 21 underrepresented investors for the State of Ohio appropriation-backed bonds. The Firm’s robust marketing efforts resulted in 7 of the 21 investors participating in the transaction. A total of 40 investors participated in the transaction, which was 5.6x oversubscribed with a total of $1.28 billion in going away orders.
Ultimately, the Firm’s efforts resulted in the State achieving its record low credit spreads for its tax-exempt lease appropriation-backed credit with an All-In TIC of 1.60%.
On May 4, 2021, Loop Capital Markets acted as a co-manager on a 5-year, $300 million senior unsecured bond offering for PACCAR Financial, Corp. The bonds are rated A1/A+.
Use of proceeds are earmarked for general corporate purposes.
On May 4, 2021, Loop Capital Markets acted as a co-manager on a 5-year $450 million, senior bond offering for AEP Texas, Inc. The bonds are rated Baa2/A-/BBB+.
Use of proceeds are earmarked for general corporate purposes relating to our utility business.
On April 26, 2021, Loop Capital Markets acted as a co-manager on a one-tranche, $300 million, senior bond offering for Whirlpool Corporation. The 10-year senior bond is rated Baa1/BBB/BBB.
Use of proceeds are earmarked for repaying debt.
On April 22, 2021, Loop Capital Markets acted as a co-manager on a one tranche, $500 million, surplus bond offering for Penn Mutual Life Insurance Company. The 40-year surplus bond is rated A2/A-.
On April 20, 2021, Loop Capital Markets acted as a co-manager on a two tranche, $800 million, fixed & floating rate bond offering for New York Life Global Funding. The bonds are rated Aaa/AA+/AAA across 3-year tranches.
Use of proceeds are earmarked for purchasing the relevant funding agreement from New York Life Insurance Company.
On April 19, 2021, Loop Capital Markets acted as a co-manager on a single tranche, $2 billion, medium term note offering for Morgan Stanley. The 3 year medium term note is rated A1/BBB+/A.
Use of proceeds are earmarked for general corporate purposes.
On April 19, 2021, Loop Capital Markets acted as a co-manager on a one tranche, $1.35 billion, preferred offering for Ally Financial, Inc.
Use of proceeds are earmarked for redeeming a portion of the Company’s 8.125% fixed rate/floating rate trust preferred securities.
On April 19, 2021, Loop Capital Markets acted as a co-manager on a one tranche, $675 million, preferred offering for Goldman Sachs.
Use of proceeds are earmarked for redeeming all of the outstanding Series N Preferred Stock.
On April 15, 2021, Loop Capital Markets acted as a co-manager on a five tranche, $13.0 billion, floating rate and fixed to floating rate bond offering for JP Morgan & Chase. The bonds are rated A2/A- across 6- 11- 21- and 31-year tranches.
Use of proceeds are earmarked for general corporate purpose.
