The New Jersey Economic Development Authority Tuesday approved refinancing up to $3.69 billion of variable-rate school construction debt that will help the state terminate about $1.7 billion of derivatives tied to the floating-rate debt.

The state anticipates issuing $1.5 billion to $2 billion of school construction refunding bonds in early January, according to Andrew Pratt, spokesman for the state's Treasury Department. The EDA serves as a conduit issuer for New Jersey's school construction debt and the debt is state appropriation bonds paid from the the general fund.

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