T3030 - Equipment Master Lease Purchasing Financing Facility

The State of New Jersey, through the Department of the Treasury, Division of Purchase and Property, awarded contract RFP 26-PROS1-144877 to JPMorgan Chase Bank, N.A. on October 1, 2026. This Equipment Master Lease Purchasing Financing Facility provides lease purchase financing services for state equipment acquisitions over a three-year base term, with options to extend for up to three additional one-year periods by mutual written consent. The contract establishes a master lease line with a maximum aggregate financing capacity of $80 million, to be drawn down at the discretion of state agencies over the initial one-year period, with anticipated annual utilization of approximately $30 million and a minimum drawdown requirement of $500,000 per transaction.

JPMorgan Chase Bank shall provide variable-rate lease financing indexed to the three-year, four-year, and five-year Secured Overnight Financing Rate (SOFR) Swap Rates, with the State selecting the appropriate term at the time of each funding. The awarded pricing structure establishes financing rates at 83.00% of the applicable SOFR Swap Rate plus spreads ranging from 69 to 73 basis points across the three rate terms. The lessor is responsible for funding third-party equipment suppliers within four business days of receiving executed payment documentation from the State's Office of Public Finance, while state agencies remit semi-annual lease payments to JPMorgan Chase Bank in arrears on June 15 and December 15 each year. The contract period extends from October 1, 2026 through September 30, 2029, with contract administration and performance conducted remotely and through the State's procurement system.