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.