New Jersey plans to issue requests for proposals for banking services in every negotiated deal going forward rather than picking banks from its current pool of underwriters.
The state’s Treasury Department last week released an RFP for investment banking services for an upcoming New Jersey Economic Development Authority school facilities construction bond transaction. The document stated the department’s new strategy of seeking underwriting services for every negotiated borrowing.
“It is the state treasurer’s policy directive — moving forward — that when competitive bidding is not appropriate, to issue a request for proposals for investment banking services on a transaction-by-transaction basis,” according to the RFP.
Responses are due March 9 by 3:00 p.m. The state is looking to select firms for senior manager, co-senior, and co-manager, as well as a banking syndicate.
The new-money portion of the transaction will help roll over $400 million of EDA school facilities construction notes that will mature on June 18.
In addition, the state needs to align a $500 million floating-to-fixed-rate swap that will begin on May 1 with variable-rate debt. Officials could pair a portion of that derivative with the debt used to roll over the $400 million of notes, if the state issues the debt in variable-rate mode.
The state also seeks to restructure EDA school construction debt to decrease fiscal 2010 debt-service payments by $59 million, according to the RFP.