New Jersey is seeking a financial adviser to assist the state on an upcoming New Jersey Sports and Exposition Authority bond restructuring deal that will help reduce debt service costs in fiscal 2012.
The NJSEA bonds are state contract debt that is paid off from New Jersey’s general fund. Officials are looking to reduce debt service costs on state contract bonds by $75 million in fiscal 2012, according to the request for proposals. Fiscal 2012 begins July 1.
Gov. Chris Christie’s fiscal 2012 budget proposal includes a total of $120 million of debt service savings by postponing those costs to future years.
By law, any restructuring of New Jersey debt must produce a positive net-present-value savings. The refinancing transaction cannot push out the current maturity schedule and officials prefer to achieve nominal debt-service savings. Submissions must include a financing plan that achieves those goals.
Officials expect to price the NJSEA refinancing deal in the spring via competitive bid, according to the RFP.
Interested advisory firms must have experience in the past two years consulting on state-level authority or agency refunding transactions that priced competitively.
Consultants also need to have served since 2009 as financial adviser to a government entity on at least three debt sales, each totaling $50 million or more.
Responses are due by Thursday.
