Loop Capital Joint Bookrunner for the State Public Works Board of the State of California's $497 million Lease Revenue Bond Offering
Loop Capital participated as a Joint Bookrunner in the State Public Works Board of the State of California's lease revenue bond offering. The State Public Works Board is empowered to, among other things, acquire, construct, improve, equip, maintain, operate and lease public buildings and related facilities for the use of state agencies.
The A2/BBB+/BBB+ rated bonds were issued on November 9, 2011 to provide funds for the construction of new courthouses for the Superior Court of California. Yields on the bonds ranged from 1.81% in 2014 to 5.20% in 2031, which were lower by as much as seven basis points in certain maturities from the initial launch period. This was a result of a marketing and pricing strategy that included bifurcating, trifurcating and holding back some bonds in some maturities to maximize retail and institutional participation.
Over $2.18 billion of orders were placed and resulted in a 4.38x oversubscription despite the recent heavy supply of state bonds from various issuances that totaled over $5.4 billion in the prior month.
