Investors Flock To Jersey Turnpike: Authority sells more than $1 billion in ‘Build America' bonds to fund $7-billion capital program
05.06.2009
Engineering News-Record
Nossaman Partner Barney Allison was quoted by Engineering News-Record in the story "Investors Flock To Jersey Turnpike: Authority sells more than $1 billion in ‘Build America' bonds to fund $7-billion capital program."
The story reported that the New Jersey Turnpike Authority can begin its $7-billion capital program, because it is the nation's first transportation agency to sell more than $1 billion in taxable bonds that come with a 35% reimbursement from the federal government under the American Recovery and Reinvestment Act. The bonds, known as Build America bonds, will contribute $1.375 billion to the authority's 10-year capital program.
The article quotes Mr. Allison commenting on the New Jersey Turnpike bonds, warning of limitations, including the scheduled expiration of the Build American bond program at the end of 2010. "I'd say for a toll-road credit, you have to have a mature system, a lot of diversification in it and the ability to show—as New Jersey has—that you've got business-oriented board members willing to consider rate adjustments despite the economic downturn. That's what investors will be attracted to. It's not every toll-road project that can do that."
The story reported that the New Jersey Turnpike Authority can begin its $7-billion capital program, because it is the nation's first transportation agency to sell more than $1 billion in taxable bonds that come with a 35% reimbursement from the federal government under the American Recovery and Reinvestment Act. The bonds, known as Build America bonds, will contribute $1.375 billion to the authority's 10-year capital program.
The article quotes Mr. Allison commenting on the New Jersey Turnpike bonds, warning of limitations, including the scheduled expiration of the Build American bond program at the end of 2010. "I'd say for a toll-road credit, you have to have a mature system, a lot of diversification in it and the ability to show—as New Jersey has—that you've got business-oriented board members willing to consider rate adjustments despite the economic downturn. That's what investors will be attracted to. It's not every toll-road project that can do that."