VIA Metropolitan Transit Authority (TX)
Farebox Revenue Improvement and Refunding Bonds,
Siebert Brandford Shank takes down bonds for VIA Metropolitan Transit Authority
The VIA Metropolitan Authority offering in October of 2013 was VIA’s inaugural issuance of bonds in the municipal bond market. Entering the municipal bond market with a relatively small inaugural issue with concerns about the liquidity in the midst of political and economic turbulence (the federal government was shut down and didn’t resume operations until October 17), and a pricing scheduled the same day as two larger and similarly-rated frequent Texas issuers was a challenge.
Siebert Cisneros Shank worked diligently with VIA and its co-financial advisors to provide an optimal premarketing period—posting the preliminary official statement two weeks before pricing and developing an online investor presentation.
Despite a weak market tone, at the end of the order period, there were $91 million in total orders with $64 million priority. As expected, the front end of the transaction was oversubscribed with a balance remaining in 2025, 2033 and no orders in 2030—in total, $8.2 million unsold bonds. With the oversubscriptions in the 2015 to 2021 maturity range, we reduced pricing spreads and the underwriting group stepped up to underwrite the unsold bonds for the benefit of VIA. Siebert Cisneros Shank underwrote $6.9 million of the unsold bonds.
The pricing and sale of VIA’s bonds was well executed and successful even though it was VIA’s inaugural issuance.