Merrill Lynch & co. has been chosen as the book-running senior manager for an upcoming issue of new and refunded Michigan transportation debt, according to a state official.
Nick Khouri, the state's chief deputy treasurer, said Donaldson, Lufkin & Jenrette Securities Corp. and Goldman, Sachs & Co. were also chosen as co-senior managers for the deal the state expects to price in mid-July.
Mr. Khouri said the size of the issue has not yet been determined, but would contain $200 million of new transportation debt, $30 million of bonds for public transit use, and the refunding of some of the approximately $500 million of outstanding transportation bonds.
The new transportation revenue bonds will be the first the state will issue under the Build Michigan program announced by Gov. John Engler in February. The $5 billion, 10-year plan calls for rebuilding 7,000 miles of state highways and about 1,000 bridges.
The plan initially includes only the $200 million of revenue bonds backed by gas taxes and user fees. The rest of the money for Build Michigan will come from the federal government and other state sources. The state plans to use the bond proceeds to leverage about $1.5 billion of federal funds under the new federal transportation program
A state transportation official has said more bonding may be added as the plan progresses.
Co-bond counsels for the issue are Dickinson, Wright, Moon, Van Dusen & Freeman and Dykema Gossett, Mr. Khouri said. He added that co-managers have not yet been chosen.