On November 2, 2021, Loop Capital Markets served as the Senior Manager for the University of Colorado’s $125 million Enterprise Revenue Refunding Bonds, Series 2021C-3AB (Green Bonds) rated Aa1 (Stable) by Moody’s and AA+ (Stable) by S&P. Proceeds of the Bonds were used to current refund the University’s Enterprise Revenue Bonds, Series 2020AB (Variable Rate Demand Bonds). This transaction was designated as Green Bonds given that the refunded VRDBs originally financed facilities certified as LEED Gold. The Bonds have a nominal maturity of 2051 with 4-year and 5-year hard puts to take advantage of the slope of the tax-exempt yield curve. The Bonds were structured with 2% coupons to provide a low interest cost to the University and no optional redemption prior to the mandatory tender date. The hard put structure was selected over a soft put given the University’s cash balance in October (timing of mandatory tender) and back-up line of credit.
Loop Capital Markets’ banking team compiled an investor analysis that identified 11 targeted underrepresented investors for the University’s Put Bonds with 4 of these investors having participated in the transaction. The transaction was primarily sponsored by Bond Funds and SMAs with 31 accounts participating in total. Loop Capital Markets generated $980 million in priority orders resulting in 7.8x oversubscription. As a result, the Firm was able to tighten spreads by 6 bps between pre-pricing and re-pricing. Loop Capital Markets crafted a designation policy that prioritized ESG orders resulting in orders from 9 self-identified ESG investors.
On August 10, 2021, Loop Capital Markets acted as a co-manager on a two-tranche €900 million senior unsecured bond offering for Becton Dickinson & Co. The bonds are rated Baa3/BBB/BBB- across 2- and 4-year tranches.
Use of proceeds are earmarked for Tender Offers and general corporate purposes, including the retirement of debt.
On October 5, 2021, Loop Capital Markets served as the Book Running Senior Manager for Hamilton County’s (”County”) $46.290 million Sales Tax Refunding Bonds, Series 2021A. The Bonds were rated Aa3/AA- by Moody’s and S&P, respectively. The County’s Sales Tax Bonds were upgraded by Moody’s to Aa3 from A1 as part of the financing based on strong debt service coverage levels.
The Bonds were a tax-exempt current refunding with a final maturity of 2032. The Bonds were originally issued to finance the construction of the Paul Brown Stadium (home of the Cincinnati Bengals) and the Great American Ballpark (home of the Cincinnati Reds). Throughout the pre-marketing process, the Firm provided the County investor feedback, including investors expected to place orders and the rationale from non-participating accounts. In addition, the Firm compiled an investor analysis that helped identify and target 16 underrepresented investors for the County’s Sales Tax bonds. Five of the 16 targeted investors ultimately participated in the transaction.
The Bonds received robust investor demand as over 25 investors participated in the transaction, including separately managed accounts, bond funds and money managers. Orders totaled $437.61 million and the Bonds were 9.4x oversubscribed. Because of strong subscription levels, the Firm was able to tighten pricing levels up to 9 basis points depending on maturity. The refunding generated NPV savings of $15.900 million or 26.634% of refunded par with an All-In TIC of 1.365%.
On September 14, 2021, Loop Capital Markets successfully priced the City of Atlanta’s (the “City”) Airport General Revenue Refunding Bonds, Series 2021A (Non-AMT), 2021B (Non-AMT), and 2021C (AMT). The Bonds were rated Aa3 (Stable) and AA- (Stable) by Moody’s and Fitch, respectively, despite the fluctuating performance of the airline industry. Proceeds of the Series 2021ABC Bonds will be used to refund the City’s outstanding Series 2012ABC Bonds. The Bonds consisted of three tranches: $44.305 million Series 2021A, $129.985 million Series 2021B and $161.580 million Series 2021C and were structured with a 10-year par call (July 1, 2031), final maturity of 2042 and 5%, 4% and 1.5% coupons.
Together with the Financial Advisors, Loop crafted an extensive investor and targeted 53 views of the accounts that viewed. Irrespective of substantial competition in the market ($2B California GO; $630M NYC Water; $195M LIPA; $400M Illinois GO), Loop Capital was able to build a successful book of business and attract 20 repeat buyers (holders of the refunded bonds) as well as 31 new investors that were not current holders of the City’s airport debt. While MMD remained stable, total adjusted spreads from premarketing to repricing were up to 7 bps for Non-AMT maturities and up to 13 bps for AMT maturities. Pricing spreads on the 5% and 4% callable bonds, with a few exceptions, were the tightest that the City has achieved for a GARB transaction since 2000. In particular, the 4.00% AMT coupon bonds in years 17-21 were heavily oversubscribed and sold at a final spread of only 16-19 bps over non-AMT bonds. Ultimately, the City achieved $118 million in NPV savings, or 28.7% of refunded par ($135 million of cashflow savings) with a True-Interest Cost of 2.22%. This was $27 million more in NPV savings compared to the initial refunding analysis provided in November 2020.
On August 11, 2021, Loop Capital Markets served as a co-manager on a $101.55 million (IPO) for NewLake Capital Partners.
Use of proceeds are earmarked for the NewLake Capital Partners operating partnership in exchange for OP units, and the operating partner will acquire target assets in a manner consistent with the company’s investment strategy.
On August 11, 2021, Loop Capital Markets acted as a junior co-manager on a $500 million senior unsecured bond offering for Ventas Realty, Limited Partnership. The 10-year bond is rated Baa1/BBB+.
Use of proceeds are earmarked general corporate purposes, which may include repayment of existing indebtedness for Ventas Realty’s new Senior Investment Group acquisition, along with payment of fees and expenses relating to the acquisition.
On August 11, 2021, Loop Capital Markets was mandated as a joint-bookrunner on a two-tranche a $1.10 billion medium term notes offering for Air Lease Corporation. The bonds are rated BBB/BBB across 3- and 7-year tranches.
Use of proceeds are earmarked for general corporate purposes which may include debt repayment.
On August 10, 2021, Loop Capital Markets acted as a co-manager on a 5-tranche $5 billion senior unsecured bond offering for Intel Corporation. The bonds are rated A1/A+/A+ across 7-, 10-, 20-, 30- and 40-year tranches.
Use of proceeds are earmarked for general corporate purposes, including, but not limited to, refinancing of outstanding debt, funding for working capital and capital expenditures.
On August 10, 2021, Loop Capital Markets acted as a co-manager on a two-tranche $800 million senior unsecured bond offering Avery Dennison Corporation. The bonds are rated Baa2/BBB across 3- and 11-year tranches.
Use of proceeds are earmarked to finance a portion of the Vestcom International Acquisition or for other general corporate purposes which may include funding the special mandatory redemption of the 2032 notes.
On August 10, 2021, Loop Capital Markets acted as a co-manager on a $1 billion senior unsecured 2021 Series C Green bond offering for Dominion Energy Inc. The 10-year bond is rated Baa2/BBB/BBB+.
Use of proceeds are earmarked to finance capital expenditures, future acquisitions, to retire or redeem debt securities, and for Eligible Green bond expenditures.
