New Jersey on Friday postponed a $2.6 billion tax and revenue anticipation note sale that was scheduled to price on Tuesday citing concerns about Hurricane Sandy, which was expected to strike the Northeast early next week.
The deal was scheduled to be largest municipal transaction of the week.
Other issuers were monitoring the weather situation but as of Friday afternoon were still planning to proceed with their offerings.
The University of Washington’s $280 million deal and Maryland’s Washington Suburban Sanitation Department deal were still both scheduled to price in competitive sales on Tuesday, but officials said they were evaluating possible storm disruptions.
As of Friday, the Trust for Cultural Resources of the City of New York was still set to sell $112 million of revenue bonds for the New York Aquarium in Brooklyn and the Bronx Zoo on Wednesday, according to a person familiar with the matter.
Andy Pratt, a spokesman for the N.J. Department of Treasury, said that the note deal had been postponed indefinitely due to a number of possible disruptions from the storm.
“One would be that all of our electronic communications are shut off and we couldn’t have the sale. The second is that some other bank’s communications and abilities to respond could be cut off as well,” he explained.
Damages from the storm in the state could also affect revenues or the economy, Pratt added.
After the storm passes, state officials will reassess the situation.
The $2.6 billion of notes was expected to pay off a line of credit with Bank of America Merrill Lynch and address ongoing cash flow needs.
The $2.1 billion line of credit is due on Nov. 1, but Pratt said they have been talking with the bank and do not think there will be any issues.