The Connecticut State Bond Commission Friday approved $3.64 billion of bonds, including $2 billion for the state’s Teachers’ Retirement Fund. With the approval of the bond allocations, the state looks toward a pension obligation bond sale in the spring.

Treasurer Denise L. Nappier’s office said the state plans to issue the $2 billion of taxable POBs either in one or two sales, which will close before the end of fiscal 2008 on June 30.Nappier, a Democrat, last Friday announced that Bear Stearns & Co and Merrill Lynch would work together as lead book-runner and co-book-runner for the deal. These firms have also led POB transactions for Illinois, Oregon, and Puerto Rico. Additionally, Nappier named Citi, Lehman Brothers, M.R. Beal & Co., Morgan Stanley, JPMorgan, Ramirez & Co., Siebert Brandford Shank & Co., and UBS Securities LLC as co-senior managers to the deal. Co-managing underwriters will be named closer to the first sale date.

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