On December 9, 2021, Loop Capital Markets served as the Senior Manager for the Oregon Health and Science University’s (the “OHSU”) $91.960 million Revenue Bonds, Series 2021B (Tax-Exempt Long-Term Bonds) (the “Bonds”). The Bonds were rated Aa3 (Stable) / AA- (Stable) / AA- (Stable) by Moody’s, S&P and Fitch, respectively.
Bond proceeds were used to (i) redeem the remaining portion of the Series 2016A Bonds, without premium, plus interest accrued thereon, if any, to the redemption date, (ii) purchase any 2019B Bonds tendered for cash pursuant to the Offer to Tender or Exchange Certain Outstanding Bonds and (iii) finance and refinance the acquisition of clinical sites or other facilities currently leased by OHSU. The Bonds have a nominal maturity of 2046 and consist of hard put bonds including $45.990 million with a 8-year mandatory tender date and a yield of 1.260% and $45.970 million with a 10-year mandatory tender date and a yield of 1.420%. The Bonds were structured with 5% coupons with a 3-month optional redemption prior to the mandatory tender date.
Throughout the pre-marketing process, the Firm provided OHSU with investor feedback from almost 40 accounts. Ultimately, a diverse pool of 20 investors participated in the transaction consisting of Tier 1 and Tier 2 accounts including a municipal bond fund designed especially for Oregon residents. Priority orders totaled $382.495 million with 4.2x oversubscription. Given strong subscription levels, the Firm was able to tighten spreads by 4 bps for the 8-year term and 2 bps for the 10-year term, respectively. The Series 2021B Bonds were issued in conjunction with the $338.380 million Series 2021A Fixed-Rate Bonds, $11.585 million Series 2021C Put Bond Exchange and $56.495 million Series 2022A Forward Delivery Bank Loan.