On May 20, 2020, Loop Capital Markets acted as a co-manager on a one-tranche, $400 million, first mortgage bond offering for Duke Energy Ohio. The 10 year note is rated A3/A.
Use of proceeds are earmarked for paying down a portion of the company’s outstanding inter-company short-term debt under our money-pool borrowing arrangement with Duke Energy Corporation and for general corporate purposes.
On May 20, 2020, the Virginia Resources Authority (the “Authority”) sold the $55.320 million Virginia Pooled Financing Program Bonds, Series 2020A with Loop Capital Markets serving as senior manager. Proceeds of the bonds were used to (i) purchase or acquire local bonds and financing leases issued or entered into by certain Local Governments to finance or refinance Qualified Projects; (ii) to provide for a deposit to the Capital Reserve Fund; and (iii) to pay costs of issuance related to the 2020A Bonds. The Infrastructure Revenue Bonds (Tax-Exempt and Taxable) were rated Aaa/AAA by Moody’s and S&P, respectively. The State Moral Obligation Revenue Bonds were rated Aa1/AA by Moody’s and S&P, respectively.
The Infrastructure Revenue Bonds (Tax-Exempt) and State Moral Obligation Revenue Bonds were structured with serial maturities in years 2021-2040 with 4% and 5% coupons. The Infrastructure Revenue Bonds (Taxable) were structured with serial maturities in years 2020-2040 and a term bond in 2042. In support of the transaction, the Firm put its capital to use and saved the client money by holding the line on pricing and underwriting $4.25 mm in bonds.
On May 19, 2020, the Chicago Park District (the “Park District”) sold the $122.540 million General Obligation Bonds, Series 2020ABCDE financing with Loop Capital Markets serving as bookrunning senior manager. Proceeds of the bonds were used to (i) finance a portion of the cost of building, maintaining and improving parks within the Park District of its Capital Improvement Plan, and takeout the 2019 Bond Anticipation Notes under a Line of Credit; (ii) refund all or a portion of certain maturities of the District’s outstanding Series 2010A and 2010B Bonds; (iii) pay capitalized interest on certain series of the 2020 Bonds; and (iv) pay costs of issuance of the 2020 Bonds. The Bonds were rated AA- (Negative) / AA- (Negative) / AA (Negative) by S&P, Fitch and Kroll, respectively.
The transaction was structured with serial maturities ranging between 2021 and 2042, 4% and 5% coupons and partial insurance by Build America Mutual Insurance Company. The Firm developed an investor roadshow in conjunction with the Park District which was viewed by 32 unique investors during the pre-marketing period. Due to strong subscription levels, spreads tightened between three and six basis points between preliminary pricing and final pricing. In support of the transaction, the Firm underwrote $2.275 million with no yield adjustments.
On May 18, 2020, Loop Capital Markets acted as a bookrunner on a two-tranche, $2.5 billion, senior unsecured bond offering for Intercontinental Exchange, Inc. The notes are rated A2 across 10- and 30-year tranches.
Use of proceeds are earmarked for general corporate purposes, including to fund the redemption of $1.25 billion aggregate principal amount of 2.75% Senior Notes due 2020 and to pay down a portion of commercial paper outstanding.
On May 15, 2020, Loop Capital Markets acted as a co-manager on a one-tranche, $500 million, junior subordinated bond offering for CMS Energy Corporation. The 30-year note is rated Baa2/BB+.
Use of proceeds are earmarked for general corporate purposes.
On May 13, 2020, Loop Capital Markets acted as a co-manager on a five-tranche, $5.0 billion, senior unsecured bond offering for UnitedHealth Group. The notes are rated A3/A across 6- 10- 20- 30- and 40-year tranches.
Use of proceeds are earmarked for general corporate purposes, which may include refinancing short-term borrowings or redeeming, repurchasing or repaying outstanding securities.
On May 13, 2020, Loop Capital Markets acted as a co-manager on a one-tranche, $500 million, senior unsecured bond offering for Appalachian Power Company. The 30-year note is rated Baa1/A-.
Use of proceeds are earmarked for general corporate purposes, the repayment of advances from affiliates and for other general corporate purposes relating to the utility business.
On May 13, 2020, New York City Transitional Finance Authority (“NYC TFA” or the “Authority”) sold its $850 million Future Tax Secured Subordinate Bonds, Fiscal 2020 Subseries C-1 with Loop Capital Markets as bookrunning senior manager. The Bonds were rated Aa1/AAA/AAA by Moody’s, S&P and Fitch, respectively. This was the first transaction for the City of New York (the “City”) post coronavirus and was the first transaction priced remotely in the history of the City of New York’s financings. Proceeds of the Bonds were used to finance general City capital expenditures. The Bonds were structured with serial bonds in years 2022-2041 and 2046 with a term bond in 2045 with a par call on November 1, 2030.
The Firm assisted the City in developing a comprehensive internet roadshow, primarily aimed at addressing concerns over the impact on revenues resulting from the Coronavirus pandemic. The roadshow was ultimately viewed by 60 research analysts and investors. Loop Capital Markets conducted a one-day retail order period that generated $552.69 million in orders, one of the most successful retail order periods for the Authority in recent history. After the retail order period, several maturities were closed and $562.2mm were offered for the Institutional Order Period.
The institutional order period generated $5.7 billion in priority orders across a wide range of account types. Institutional yields were reduced by 3-5 bps during pricing in the 5% coupon 2022-2035 maturities, 17 bps in the 4% coupon 2036-2040 maturities and 10 and 12 bps in the 5% coupon 2041 and the 4% coupon 2045 term bonds, respectively, with the final 3% coupon 2046 maturity remaining unchanged. The Authority received $6.2 billion in orders from a broad investor base, with the transaction being more than 7.37x oversubscribed. Due to market concerns, the transaction was initially sized only at $500mm, upsized to $700mm for the retail period, and finally to $850mm based on positive retail order results and significant institutional demand.
On May 12, 2020, Loop Capital Markets acted as a co-manager on a one-tranche, $525 million, senior unsecured bond offering for Radian Group Inc. The 5-year note is rated Ba1.
Use of proceeds are earmarked for general corporate purposes, which may include future contributions to insurance subsidiaries.
On May 12, 2020, Loop Capital Markets acted as a co-manager on a two-tranche, €2.15 billion, senior unsecured bond offering for Verizon. The notes are rated Baa1/A- across 13- and 20-year tranches.
Use of proceeds are earmarked for the purchase of Tender Offer Notes. Any net proceeds not used for the foregoing shall be used for general corporate purposes, which may include repayment of outstanding indebtedness.
