New Jersey officials are working on a $750 million new-money New Jersey Transportation Trust Fund Authority bond sale that includes $250 million of capital appreciation bonds.
Merrill Lynch & Co. will kick off the tax-exempt deal on Wednesday with a one-day retail order period before institutional pricing. Citi and M.R. Beal & Co. will serve as co-senior managers. Those two banks are in New Jersey's co-managing underwriting pool, but as the state's senior underwriting pool has lost two of its five firms - Bear, Stearns & Co and UBS Securities LLC - Treasury Department officials are considering banks within the larger, co-managing group to help structure bond deals.