Barclays Capital will serve as senior manager on a $1.2 billion New Jersey Transportation Trust Fund Authority deal set to price in August or September.
The transaction will include $800 million of new-money bonds and it is “almost certain” that officials will use taxable Build America Bonds for that portion of the sale, according to Andrew Pratt, spokesman for New Jersey’s Treasury Department.
Another $400 million of refinancing debt will help the authority achieve its necessary bonding capacity in fiscal 2011, which began July 1.
“Some of it will be determined on where can we get the biggest bang for our buck in refinancing the debt and free up the most debt service, and that’s where we’ll go,” Pratt said.
Every year, the Legislature allocates $895 million of funds to support TTFA new-money bond issuance for roads, bridges, and mass-transit projects. In fiscal 2012 all of the $895 million allocation will be needed to cover debt service costs.
Earlier this year, the authority’s board approved up to $1.6 billion of total borrowing for fiscal 2011.
