City of Chicago: Major Bond Issuance Managed by Loop Capital Markets
Deal News | Jun 04, 2025 | Loop Capital Markets LLC
Loop Capital Markets has assumed a leading role as the Bookrunning Senior Manager in the City of Chicago's issuance of $695.380 million in General Obligation Bonds, Series 2025ABCDE. Dated June 4, 2025, this issuance sees various financial ratings including BBB (Stable) from S&P and AA (Stable) for specific maturities that are insured, marking it as a crucial capital project for the city. The bond proceeds aim to fund parts of Chicago’s capital improvement projects, refinancing, and other financial matters. Through strategic orchestration, Loop Capital structured the bonds to address gaps in Chicago's existing financial obligations. Notably, they offered critical fundraising support by organizing a digital investor roadshow, which attracted 32 investors. As part of their comprehensive management, Loop Capital guided the City in meeting queries from potential investors during pre-marketing, especially concerning House Bill 3657 and its implications for pension contributions. The issuance stirred a significant $5.5 billion in priority orders and saw substantial engagement, eventually achieving an All-In TIC of 5.601% over an 18.788-year average life. Such activities highlight significant investor interest in tax-exempt and taxable bonds during a major issuance week in 2025.
Sectors
- Public Finance
- Financial Services
- Municipal Bonds
Geography
- United States – The location of the City of Chicago and Loop Capital Markets, making the activity and financial implications significant for the U.S. municipal bond market.
- Chicago, Illinois – The specific city involved in the issuance of these bonds and recipient of the financial proceeds.
Industry
- Public Finance – This relates to the issuance and management of public sector securities or governmental bonds, crucial to financing the City of Chicago's infrastructure projects.
- Financial Services – Involves entities like Loop Capital Markets providing advisory and underwriting services to support bond issuance.
- Municipal Bonds – Specifically pertains to the issuance of bonds by local or state governments to finance public projects.
Financials
- 695.380 million – The total value of the General Obligation Bonds issued by the City of Chicago.
- 5.601% – The All-In True Interest Cost (TIC) achieved through the bond transaction.
- 18.788 years – The average life of the bonds that were issued.
- 5.5 billion – Total priority orders generated for the tax-exempt portion of the bonds.
- 25 million – Priority orders for the taxable portion of the bonds.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Loop Capital Markets LLC | Bookrunning Senior Manager | Company | Leading the bond issuance process, coordinating investor engagement, and finalizing terms. |
| City of Chicago | Issuer | Government | The municipality raising funds through the issuance of General Obligation Bonds. |
| BAM (Build America Mutual) | Insurer | Company | Provides insurance for specific maturities of the bonds, enhancing their credit rating. |
| S&P Global Ratings | Rating Agency | Company | Assigned credit ratings to the bonds, pivotal in determining investor confidence and interest. |
| Fitch Ratings | Rating Agency | Company | Provided a credit rating for the bonds, influencing investor decisions. |
| Kroll Bond Rating Agency | Rating Agency | Company | Conducted analysis and issued a credit rating for the bonds. |