Aug 1 The New Jersey Turnpike Authority will
issue its third round of revenue bonds this summer as part of
the $6.3 billion in sales of U.S. municipal bonds and notes next
week, according to Thomson Reuters estimates.
New Jersey plans to sell $205.7 million of turnpike revenue
bonds, series 2014 C. In May, the turnpike authority issued $1
billion of fixed-rate turnpike revenue bonds in series 2014 A,
and in July, the authority issued $125 million of floating rate
turnpike revenue bonds in series 2014 B.
The New Jersey Turnpike Authority operates the state's
turnpike and Garden State Parkway. The authority is in the midst
of a $7 billion capital improvement program in which toll
revenue supports the bond issuances. Thus far, the capital
improvement program is under-budget and ahead of schedule,
according to information presented to investors.
Moody's Investor Service rated the bonds A3, citing an
inelastic demand for the authority's toll roads despite large
rate increases, the economic recession, and severe weather
events such as Hurricane Sandy.
Negotiated sales of bonds and notes are expected to total
more than $4.6 billion next week, with competitive offerings
reaching $1.7 billion.
Also on the calendar are $500 million of general obligation
bonds from the state of Connecticut and $575 million of revenue
bonds from the Illinois Finance Authority for the University of
One of the largest deals hailed from the Rhode Island
Tobacco Settlement Financing Corporation, which plans to issue
$593.7 million of asset-backed bonds in part to refund the
corporation's old debt.
(Reporting By Robin Respaut; editing by Gunna Dickson)