In an unprecedented event, Loop Capital Markets was hired as a bookrunner on a public offering of preferred stock priced at $600 million for insurance giant Allstate.
According to Allstate, Loop Capital’s deed with one of the nation’s largest insurers marks the first time a diverse-owned business enterprise has acted as a joint book-runner on a preferred stock issuance.
Chicago-based Loop Capital was No. 1 on the most recent list of investment banks on the BE 100s, a listing of the nation’s largest Black-owned businesses.
The group helped sell the preferred stock to investors interested in acquiring and receiving ongoing quarterly dividends from it, an Allstate spokesperson explained. Allstate plans to use the net proceeds for general corporate purposes such as investments and other uses.
The latest transaction of Series Preferred J Stock comes after Allstate redeemed all outstanding shares of Series G Preferred Stock for a total redemption payment of $575 million last month.
Along with Loop, other joint bookrunners on the offering were Morgan Stanley & Co., B of A Securities Inc., J.P. Morgan Securities, and Wells Fargo Securities.
Allstate Chief Financial Officer Jess Merten shared via email with BLACK ENTERPRISE on May 18 that Allstate’s commitment to inclusive diversity extends through strategic relationships with its partners, helping both achieve shared objectives.
“Our relationship with Loop Capital has grown since they led our $1.2 billion bond offering in 2020, along with other MWVBE firms. Loop has proven they have the expertise and capabilities to excel in this area, and we are thrilled at their performance this week. “
Loop Capital’s CEO Jim Reynolds provided this comment to BLACK ENTERPRISE on the groundbreaking deal: “Loop Capital Markets has had a longstanding relationship with Allstate, and our work with them on this preferred transaction is another seminal moment.”
He added, “Through this transaction, Allstate further demonstrated their commitment to elevating the stature and exposure of diverse-owned firms, like Loop Capital Markets, to more complex and non-traditional transactions which leverage investments that we have made in our business to deliver for our clients.”