Loop Capital Markets Serves as Senior Manager on $1.54 Billion City of Los Angeles 2024 TRANs

On June 26, 2024, Loop served as a Bookrunning Senior Manager for the City of Los Angeles’ $1.54 Billion 2024 Tax and Revenue Anticipation Notes (tax-exempt, Non-AMT) – rated MIG 1 and SP-1+ by Moody’s and S&P, respectively. Proceeds of the notes will be used to provide effective cash flow management for revenues and expenditures of the City’s General Fund for Fiscal Year 2024-25 and make the City’s Fiscal Year 2024-25 annual contribution payments to the Los Angeles Fire and Police Pension Plan and the Los Angeles City Employees’ Retirement System.

The TRANs sale was accomplished in the wake of a high-volume week (over $11.7 billion of competing new issue supply), competing products like VRDB and CP with rates around 4%, and during a time where the municipal market lacked direction (MMD had 6 consecutive sessions with no change up until pricing). Our desk’s aggressive posture – from pre-marketing to pricing, spot-on assessment of the market, and the Firm’s robust marketing efforts resulted in over $1.6 billion in orders (1.1x subscription). Ultimately, the City achieved a yield of 3.42%.