The New Jersey Turnpike Authority came to market yesterday with over $1 billion of Build America Bonds, the largest offering of this type of security so far.
Morgan Stanley priced $1.375 billion of turnpike revenue BABs for the Turnpike Authority. The bonds, which mature in 2040, are priced at par to yield 7.41%. At the same time, $375 million of tax-exempt bonds were priced for the authority, also by Morgan Stanley. They mature in 2028 and 2040, yielding 5.03% with a 5% coupon and 5.35% with a 5.25% coupon in 2040, respectively. The bonds are callable at par in 2014 and 2019, respectively.