New Jersey Higher Education starts Dutch tender for 20 bond series

By Marisa Wong

Madison, Wis., May 10 - The State of New Jersey Higher Education Student Assistance Authority announced the start of a modified Dutch auction cash tender offer for 20 series of its student loan revenue bonds totaling $218.5 million.

The offer will expire at 5 p.m. ET on May 23.

Affected notes include the following:

• $1 million of 2002 series A bonds due June 1, 2037;

• $50,000 of 2002 series C bonds due June 1, 2037;

• $2.95 million of 2002 series D bonds due June 1, 2037;

• $3.65 million of 2003 series A bonds due May 28, 2038;

• $42.4 million of 2003 series C bonds due May 28, 2038;

• $40.25 million of 2003 series D bonds due May 28, 2038;

• $50,000 of 2004 series A bonds due April 1, 2039;

• $40 million of 2004 series C bonds due April 1, 2039;

• $34 million of 2004 series D bonds due April 1, 2039;

• $5.3 million of 2005 series A bonds due April 1, 2040;

• $18.85 million of 2005 series B bonds due April 1, 2040;

• $14.6 million of 2005 series C bonds due April 1, 2040;

• $2.6 million of 2005 series D bonds due April 1, 2040;

• $250,000 of 2006 series A bonds due Dec. 1, 2040;

• $3.35 million of 2006 series B bonds due Dec. 1, 2040;

• $500,000 of 2006 series C bonds due Dec. 1, 2040;

• $2.975 million of 2006 series D bonds due Dec. 1, 2040;

• $4.25 million of 2007 series B bonds due Dec. 1, 2041;

• $1.2 million of 2007 series C bonds due Dec. 1, 2041; and

• $275,000 of 2007 series D bonds due Dec. 1, 2041.

The purchase price per $1,000 principal amount will be determined by a modified Dutch auction procedure. For all series, the acceptable purchase price range is $775 to $875. Offer prices higher than $875 will not be accepted, and bonds offered at a price lower than $775 will be deemed to have been offered at $775. The authority will accept the lowest bid prices first.

Holders must tender principal amounts equal to multiples of $50,000.

The authority said it will also pay accrued interest.

The modified Dutch auction results are expected to be announced May 24. Payment for all accepted bonds is expected to occur on June 1.

Bank of America Merrill Lynch (212 449-7358) is the dealer manager, and Wells Fargo Bank, NA (800 344-5128) is the information and tender agent for the offer.

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