After Hurricane Sandy, New Jersey is now planning to sell its $2.6 billion tax and revenue anticipation notes in a negotiated offering, instead of the originally planned competitive sale.
The notes had been scheduled to price Oct. 30, but the deal was postponed indefinitely by Hurricane Sandy’s arrival.
Andy Pratt, a spokesman for the N.J. Department of Treasury, said the state decided on Friday to go with JPMorgan as the lead underwriter on the deal after putting out a request for proposals.
“We did this because the storm and the roiling of the markets led us to want to have someone out there to ensure that we could negotiate the current investment climate,” Pratt said.
The amount is still expected to be $2.6 billion--the state's largest single Trans offering.
The notes are expected to pay off a $2.1 billion line of credit with Bank of America Merrill Lynch and to address ongoing cash flow needs.
As of Friday, the pricing date had not yet been set.