CHICAGO -- The Wisconsin Building Commission has selected First Boston Corp. and Lehman Brothers as senior managers for an upcoming state transportation revenue bond issue that could include up to $345 million of new and refunded debt.

Frank Hoadley, the state's capital finance director, said the state plans to refund about $140 million of bonds issued in 1986 and 1988 for an anticipated interest rate savings of 3% to 5%. The state is also considering the issuance of up to $205 million of new transportation debt for building new or expanding existing state highways, he added.

Mr. Hoadley said, however, that while the state expects to sell the refunding bonds in a negotiated issue, no final decision has been made on whether the new debt would also be sold in a negotiated deal. If it is, he said the firms picked by the commission would likely participate in selling the ew debt. All or some of the debt could be sold as early as next month, he added.

Co-managers selected by the commission are Robert W. Baird & Co.; Kemper Securities Group; Morgan Stanley & Co.; Merrill Lynch & Co.; Smith Barney, Harris Upham & Co.; W.R. Lazard, Laidlaw & Mead; and Reinoso and Co.

Meanwhile, the state will accept bids for its annual cash-flow borrowing Thursday. The $450 million of notes that mature June 15, 1993, carry the contractual obligation of the state, which is the highest lien on state, revenues after general obligation debt, Mr. Hoadley says.

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