By Sheri Kasprzak
New York, April 21 - The New Jersey Turnpike Authority priced $1.75 billion in series 2009 revenue bonds on Monday, said a sellside source connected to the deal.
The bonds (//A) were sold on a negotiated basis with Morgan Stanley & Co. Inc. as the lead manager.
The offering included $1.375 billion in 7.414% taxable bonds priced at 370 bps over Treasuries. Those bonds are due 2040. The sale also included $300 million in series 2009 tax-exempt bonds, which are due 2039. Those 5.25% bonds were priced to yield 5.35%. The authority also sold to retail investors $75 million in 5% tax-exempt bonds due 2028, which were priced to yield 5.03%.
The authority will receive a 35% subsidy from the U.S. government for the offering, said the sellsider, for a net cost of 4.819%.
The proceeds will be used for capital improvements, including the widening the New Jersey Turnpike and Garden State Parkway.
| Issuer: | New Jersey Turnpike Authority
|
| Issue: | Series 2009 Build America Bonds
|
| Amount: | $1.75 billion
|
| Type: | Negotiated
|
| Underwriter: | Morgan Stanley & Co. Inc.
|
| Ratings: | Fitch: A
|
| Pricing date: | April 20
|
|
|
| Series 2009 taxable bonds
|
| Amount: | $1.375 billion
|
| Maturity: | 2040
|
| Coupon: | 7.414%
|
| Price: | 370 bps over Treasuries
|
|
|
| Series 2009 tax-exempt bonds
|
| Amount: | $300 million
|
| Maturity: | 2039
|
| Coupon: | 5.25%
|
| Yield: | 5.35%
|
|
|
| Series 2009 tax-exempt bonds (retail)
|
| Amount: | $75 million
|
| Maturity: | 2028
|
| Coupon: | 5%
|
| Yield: | 5.03%
|
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