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Transaction Overview
$226,550,000*
Higher Education Student Assistance Authority
(State of New Jersey)
Student Loan Revenue and Refunding Bonds, Series 2024
Consisting of
$24,800,000* Senior Student Loan Revenue Refunding Bonds, Series 2024A (AMT),
$176,000,000* Senior Student Loan Revenue Bonds, Series 2024B (AMT),
and
$25,750,000* Subordinate Student Loan Revenue Bonds, Series 2024C (AMT)
| Estimated Size: |
$226,550,000*
|
| Security: |
The Series 2024 Bonds and any Additional Bonds or Additional Subordinate Obligations (as defined in the Preliminary Official Statement) are secured by a pledge, subject to the terms of the Indenture (as defined in the Preliminary Official Statement), of the Student Loans (including notes evidencing the same) held as part of the Trust Estate pursuant to the Indenture, including the 2024 NJCLASS Loans (as defined in the Preliminary Official Statement), Transferred NJCLASS Loans (as defined in the Preliminary Official Statement), and the moneys and securities in the various funds established under the Indenture (except the Rebate Fund and the Excess Yield Fund), and the Revenues and Recoveries of Principal (as defined in the Preliminary Official Statement). See the caption “SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2024 BONDS—General” in the Preliminary Official Statement.
The Series 2024 Bonds are additionally secured by the 2024 Debt Service Reserve Account within the Debt Service Reserve Fund, into which moneys may be paid by the State of New Jersey (the “State”) pursuant to a provision of the Act, subject to and dependent upon annual appropriations by the Legislature of the State for such purpose, as more fully described in the Preliminary Official Statement. See the caption “SOURCES OF PAYMENT AND SECURITY FOR THE SERIES 2024 BONDS—Debt Service Reserve Fund; Statutory Provisions Relating to Legislative Appropriations” in the Preliminary Official Statement. SUCH PROVISION DOES NOT CONSTITUTE A LEGALLY ENFORCEABLE OBLIGATION ON THE PART OF THE STATE OR CREATE A DEBT OR LIABILITY ON BEHALF OF THE STATE ENFORCEABLE AGAINST THE STATE. |
|
| Structure: |
Serial Bonds and Term Bonds*
|
| Expected Delivery Date: |
May 30, 2024*
|
| Interest Payment Dates: |
June 1 and December 1, payable initially on December 1, 2024
|
| Call Feature: |
The Series 2024 Bonds are subject to redemption prior to maturity as described in the Preliminary Official Statement. See “THE SERIES 2024 BONDS – Redemption Provisions” in the Preliminary Official Statement.
|
| Denominations: |
$5,000 or any integral multiple thereof.
|
| Principal Due: |
December 1, as shown on the inside front cover of the Preliminary Official Statement.
|
| Ratings: |
See “RATINGS” in the Preliminary Official Statement.
|
| Tax Status: |
Federal and New Jersey State tax-exempt**
|
| Preliminary Official Statement PDF: |
|
*Preliminary, subject to change.
** In the opinion of Obermayer Rebmann Maxwell & Hippel LLC, Bond Counsel to the Authority, assuming compliance by the Authority with certain tax covenants described in the Preliminary Official Statement including the conditions described in “Tax Matters” in the Preliminary Official Statement, under existing law, interest on the Series 2024 Bonds (as defined in the Preliminary Official Statement) is excludable from the gross income of the owners thereof for federal income tax purposes pursuant to Section 103 of the Internal Revenue Code of 1986, as amended (the “Code”), and interest on the Series 2024 Bonds will be an item of tax preference under Section 57 of the Code for purposes of computing alternative minimum tax imposed on individuals and may be taken into account in determining the “adjusted financial statement income” (as defined in Section 56A of the Code) for purposes pf computing the alternative minimum tax imposed on certain “applicable corporations” (as defined in Section 59(k) of the Code). Based upon existing law, interest on the Series 2024 Bonds and any gain on the sale thereof are not included in gross income under the New Jersey Gross Income Tax Act. See “TAX MATTERS” in the Preliminary Official Statement.
Official Site of The State of New Jersey