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Minority-owned Loop Capital leads Verizon deal in breakthrough ABS transaction

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Verizon Wireless closed its third securitization of 2020 Monday via a team of underwriters that included, for the first time, an African-American owned firm as a lead underwriter in an asset-backed transaction.

Chicago-based Loop Capital Markets was among four firms (also BofA Securities, Mizuho Securities and Wells Fargo Securities) serving as joint bookrunners for the upsized $1.2 billion Verizon Owner Trust 2020-C transaction backed by receivables of device purchase agreements financing cell phones and other devices for Verizon consumers.

"Loop Capital played an integral role on Verizon Owner Trust 2020-C, which achieved the tightest credit spread and lowest all-in yield in the history of Verizon's ABS program,” said Chan Sin, vice president and assistant treasurer for Verizon, in a statement.

“Loop Capital Markets is thrilled to expand our long-term relationship with Verizon to include this important and meaningful role on their ABS program,” said Jim Reynolds, the chairman and chief executive for Loop Capital, in a statement.

Loop Capital and Verizon Communications worked previously on the $1 billion issuance of Verizon’s Green Bond issuance in September, for which Loop Capital was joint book-running manager.

Verizon Wireless employees prepare for customers at a Verizon store in San Francisco, California, U.S., on Thursday, Feb. 10, 2011. Verizon Wireless, the wireless carrier whose stores began offering the iPhone today, may sell 2 million or more of the devices this quarter and draw subscribers from AT&T Inc., analysts said. Photographer: Ryan Anson/Bloomberg

“While Verizon has had a long history of partnering with diversity firms on capital market transactions, today marks an important first for Verizon, Loop, and the ABS market as Loop was a lead underwriter on our very successful $1.2 billion transaction,” Scott Krohn, senior vice president and treasurer at Verizon, said in a press release.

“Verizon is very committed to promoting racial equity across all platforms, including in the capital markets,” Krohn added. “We hope that other issuers will follow our lead on this transaction, as well as on our recent Green Bond transaction, by taking action to address structural inequity and economic disparity faced by African-American and other minority- and women-owned businesses.”

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