Loop Capital Markets Serves as Bookrunning Senior Manager and Co-Dealer Manager for NYW’s $886.8 million Water and Sewer System Second Resolution Revenue Bonds, Fisal 2025 AA

On September 24, Loop Capital Markets served as senior manager and co-dealer manager on New York City Municipal Water Finance Authority’s (“NYW”) $886.77 million Water and Sewer System Second Resolution Revenue Bonds, Fiscal 2025 AA transaction.  This transaction funded capital improvement projects, refunded certain outstanding bonds and purchased the bonds tendered and accepted by NYW.  This was the first tender by NYW and one of the first ever low coupon tenders by any issuer.  NYW’s targeted tender candidate included certain 2% and 3% coupon bonds and one 5% coupon bond totaling $478.7 million of which $45.5 million or 10% of the tender candidates were tendered to NYW.  The tender financing generated $3.6 million or 8.3% PV savings.  Ultimately, at the conclusion of the institutional order period, the transaction was oversubscribed by 3.4X. Given the oversubscription, yields were bumped in certain maturities by 4 to 8 basis points. The deal was upsized by $100 million due to favorable pricing levels and demand.