On January 14, 2021, Loop Capital Markets served as the Book Running Senior Manager for the Pennsylvania Turnpike Commission (the “Commission”) for its $465.730 million Turnpike Subordinate Revenue Bonds, Series A of 2021. The Bonds were rated A3/A/A-/A+ by Moody’s, S&P, Fitch and Kroll, respectively. The financing was the Commission’s first tax-exempt Subordinate Lien Act 44/89 financing since 2019. Bond proceeds were used to fund the Commission’s required payment to the Pennsylvania Department of Transportation for mass transit and capitalized interest on the 2021A Bonds as well as its 2019 Subordinate Lien financing. The financing was structured with a back-loaded amortization to take advantage of low long-term interest rates and levelize the Commission’s debt service profile.
The Firm’s marketing efforts resulted in 85 different investors participating in the transaction. The Firm targeted 19 investors who have not historically participated in the Commission’s Subordinate Lien credit, but are major holders of the Commission’s Senior Lien debt and toll road issuers nationally. Eight of those 19 investors ultimately participated in the transaction. The transaction was heavily oversubscribed, resulting in spreads tightening by 10 basis points in each maturity. The Commission achieved among the lowest spreads for its Subordinate Lien credit and received an All-In TIC of 3.15%.