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Transaction Overview

New Jersey Economic Development Authority
$778,570,000* School Facilities Construction Bonds and Refunding Bonds
Consisting of:
$350,000,000* School Facilities Construction Bonds, 2019 Series LLL,
$94,255,000* School Facilities Construction Refunding Bonds, 2019 Series MMM
&
$334,315,000* School Facilities Construction Refunding Bonds, 2019 Series NNN (Federally Taxable)

Estimated Size: $$778,570,000*
Security: The 2019 Series Bonds are special, limited obligations of the Authority, payable solely from and secured by the payments to be received by the Authority from the State of New Jersey (the “State”) pursuant to a contract, as amended (the “State Contract”) between the Treasurer of the State (the “Treasurer”) and the Authority and the other Pledged Property (as defined in the Preliminary Official Statement) under the Resolution (as defined in the Preliminary Official Statement).The 2019 Series Bonds shall not, in any way, be a debt or liability of the State or of any political subdivision thereof (other than the Authority to the limited extent set forth in the Resolution) and shall not create or constitute an indebtedness, liability or obligation of the State or of any political subdivision thereof (other than the Authority to the limited extent set forth in the Resolution) or be or constitute a pledge of the faith and credit of the State or any political subdivision thereof (other than the Authority to the limited extent set forth in the Resolution). The Authority has no taxing power. See “SOURCES OF PAYMENT AND SECURITY FOR THE 2019 SERIES BONDS” in the Preliminary Official Statement. NOTWITHSTANDING THE PLEDGE EFFECTED BY THE RESOLUTION OR ANY PROVISION OF THE RESOLUTION, ALL AMOUNTS PAYABLE PURSUANT TO THE STATE CONTRACT BY THE TREASURER SHALL BE SUBJECT TO AND DEPENDENT UPON APPROPRIATIONS BEING MADE FOR SUCH PURPOSES BY THE NEW JERSEY STATE LEGISLATURE (THE “STATE LEGISLATURE”). THE STATE LEGISLATURE HAS NO LEGAL OBLIGATION TO MAKE ANY SUCH APPROPRIATIONS.
Structure: Serial Bonds & Term Bonds*
Expected Delivery Date: November 19, 2019*
Interest Payment Dates: Interest on the 2019 Series Bonds is payable on June 15 and December 15 in each year, commencing June 15, 2020.
Optional Redemption: The 2019 Series Bonds are subject to redemption prior to maturity as described in the Preliminary Official Statement.
Denominations: $5,000 or any integral multiple thereof.
Principal Due: June 15, as set forth on the inside front cover of the Preliminary Official Statement.
Ratings: Fitch: A-
Moody’s: Baa1
S&P: BBB+
Tax Status: Federal and New Jersey State tax-exempt**
Preliminary Official Statement PDF:

*Preliminary, subject to change.

** In the opinion of M. Jeremy Ostow, Esquire, South Orange, New Jersey, Bond Counsel to the Authority, under existing statutes, regulations, rulings and court decisions, and assuming continuing compliance by the Authority with certain requirements described in “TAX MATTERS” in the Preliminary Official Statement, interest on the 2019 Series LLL Bonds and the 2019 Series MMM Bonds are not includable in gross income for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and are not an item of tax preference under Section 57 of the Code for purposes of calculating the federal alternative minimum tax. Interest on the 2019 Series NNN Bonds is includable in gross income for federal income tax purposes. Based upon existing law, interest on the 2019 Series Bonds and any gain realized on the sale thereof are not includable in gross income under the New Jersey Gross Income Tax Act, as amended. See “TAX MATTERS” in the Preliminary Official Statement.


Last Updated: Wednesday, 10/30/19