New Jersey Turnpike 30-Year Build Americas Offered at 288 Basis Points
New Jersey Turnpike Authority’s $1.5 billion sale of Build America Bonds, this week’s largest scheduled sale, is being offered at yields of about 2.88 percentage points above 30-year Treasuries, according to a person with knowledge of the deal.
The taxable bonds, which are being marketed worldwide, are scheduled for formal pricing tomorrow, according to Tom Feeney, a spokesman for the Turnpike Authority. The agency’s only other Build America issue, a $1.375 billion deal in April 2009, priced to yield 3.7 percentage points, or 370 basis points, above comparable Treasuries, data compiled by Bloomberg shows.
“It seems a bit tight, but is probably close to where it needs to be to get the deal done,” Alan Schankel, managing director of Philadelphia-based Janney Montgomery Scott LLC, which oversees $12 billion in fixed-income securities, said in an e-mail today. Janney isn’t underwriting the deal.
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