Bonds
NJ American Dream Bondholders to Get Paid on Grant-Backed Debt
- Grant-backed debt had missed five straight interest payments
- Documentation hurdles held up state grant appropriations
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Holders of $287 million of municipal bonds sold to help finance the construction of the American Dream mega-mall in New Jersey’s Meadowlands are poised to receive overdue interest next week after two years of missed payments.
The unrated bonds, which are backed by New Jersey economic development grants, skipped payments after documentation necessary to appropriate the funds ran into hurdles. New Jersey officials needed to certify a project cost statement and the state Treasury had to calculate the grant amount. The grant funds are tied to tax revenue derived from sales at the mall, which saw double-digit year-over-year increases the past two quarters.