The New Jersey Turnpike Authority is gearing up to address its problematic auction-rate securities with a $225 million bond sale set to price this month that will refinance some of the debt into variable-rate mode. It also hopes to sell $275 million of notes to buy back more of its $800 million of outstanding ARS.

The transaction comes while officials are moving forward with the state's biggest "shovel-ready" project, a $8.7 billion new passenger rail tunnel that will connect Newark to Manhattan, which received final design approval last week from the federal government and may gain $3 billion of federal funding.

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