Post Content

MassPike Logo
After months of negotiations, Governor Deval Patrick today announced that the Administration has reached agreement with financial institution UBS that will save the Commonwealth an estimated $71 million.

Due to five risky financial transactions – so-called "swaptions" – entered into by the Turnpike Authority in 2001, the Authority was at direct risk this year of having to pay UBS $261 million. Governor Patrick, Senate President Therese Murray and House Speaker Robert DeLeo passed historic transportation reform that improved the Authority's bond rating, negating the need to pay $190 million of that amount in July. While four of the five swaps were cured immediately, a fifth was at risk of being terminated by UBS, potentially costing the Commonwealth $71 million.

Under the terms of the deal negotiated by the Administration and signed with UBS, however, the July rating upgrade of the Turnpike Authority's MHS senior bonds to A- will be sufficient to prevent termination of the fifth swap.

"Today's announcement is another example of the progress we have been able to make as a result of transportation reform,” said incoming Transportation Secretary and MassDot CEO Jeff Mullan. “I want to thank Governor Patrick, my colleagues at the Turnpike Authority, EOT and the Executive Office for Administration and Finance, as well as the legislature for working with us to provide a more stable financial footing for the new Massachusetts DOT."

The rating upgrades were a result of the sweeping transportation reform that called for consolidation of the state’s fragmented transportation assets into a coordinated new entity called the Massachusetts Department of Transportation (MassDOT).  Visit the MassDOT information center.

Written By:

Recent Posts

MassDOT Announces Quaboag Connector Van Service Pilot posted on Mar 28

MassDOT Announces Quaboag Connector Van Service Pilot

MassDOT announced today that a new “Quaboag Connector” van transportation service is available for residents in the Quaboag Valley region which includes the towns of Belchertown, Brookfield, Hardwick, Monson, Palmer, Ware, Warren and West Brookfield. The curb-to-curb service has begun as a 12-month pilot that   …Continue Reading MassDOT Announces Quaboag Connector Van Service Pilot

Aeronautics: Baker-Polito Administration Awards Funding to Minute Man Air Field posted on Mar 28

Aeronautics: Baker-Polito Administration Awards Funding to Minute Man Air Field

The Baker-Polito Administration’s Department of Transportation (MassDOT) has announced an award of $850,000 to Minute Man Air Field in Stow for a project to make necessary repairs and reconstruction improvements. MassDOT Aeronautics Administrator Jeffrey DeCarlo joined State Representative Kate Hogan, elected and local officials, municipal   …Continue Reading Aeronautics: Baker-Polito Administration Awards Funding to Minute Man Air Field

Worcester: Belmont Street Bridge Opens posted on Mar 23

Worcester: Belmont Street Bridge Opens

MassDOT has announced that the Belmont Street Bridge that carries Route 9 over Interstate 290 in Worcester is now open to its permanent configuration. The bridge now features two eastbound lanes toward Shrewsbury, two westbound lanes toward Lincoln Square and a newly-added, left-turn lane through   …Continue Reading Worcester: Belmont Street Bridge Opens