Loop Capital Senior Manages the University of Connecticut's $211.6 million General Obligation Bonds
Loop Capital Markets served as senior manager on the November sale of $211,635,000 University of Connecticut ("UConn") General Obligation Bonds. The offering provided UConn with the lowest cost of funding in school history with an overall interest cost (for the new money portion) of 3.31%.
The financing included new money and refunding components and represented the largest issuance sold by UConn. The 2011 Series A new money bonds financed a variety of UConn 2000 projects, including new classroom buildings, a residential life facility and new construction and renovation of the UConn Health Center. 2011 Refunding Series A Bonds refunded a portion of the outstanding Series 2003A and 2004A bonds to generate present value savings of $1.68 million or 4.98% of the refunded bonds. Refunded bonds were selected using a Refunding Efficiency model that evaluated present value savings relative to negative arbitrage.
Prior to the sale, Loop Capital Markets worked with the State of Connecticut and UConn to develop an advertising campaign aimed at garnering retail interest in the transaction. The Firm developed a color quarter-page advertisement that was printed in 23 local newspapers. Concurrent with the print campaign, ads were also placed on the websites of nine newspapers for a total of over 900,000 impressions. The campaign ran for six days and ended on the first day of UConn's two day retail order period. The media push generated an extremely strong response from retail buyers. At the end of the retail order period, $110.8 million of retail orders were placed, representing approximately 52% of the financing. Loop Capital Markets placed $75.3 million of the total retail orders.
