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

Plan Ahead for Holiday Weekend Travel posted on Sep 1

Plan Ahead for Holiday Weekend Travel

MassDOT encourages motorists to plan ahead for safe travel during the upcoming Labor Day holiday weekend. Heaviest Labor Day traffic on I-90 is expected Thursday and Friday westbound and Monday afternoon-evening eastbound.  Based on the number of toll transactions on the Turnpike from Weston to   …Continue Reading Plan Ahead for Holiday Weekend Travel

Safe Streets Smart Trips High School Video Contest Reminder! posted on Aug 31

Safe Streets Smart Trips High School Video Contest Reminder!

Calling All Massachusetts High School Students! MassDOT announces the second annual Safe Streets Smart Trips Statewide High School Video Contest. The contest serves as an initiative within the Massachusetts Strategic Highway Safety Plan (SHSP) to promote safe walking, bicycling, and driving behaviors within the Commonwealth.   …Continue Reading Safe Streets Smart Trips High School Video Contest Reminder!

Concord: New MBTA Commuter Rail Bridge to Roll into Place This Weekend posted on Aug 28

Concord: New MBTA Commuter Rail Bridge to Roll into Place This Weekend

As part of the ongoing rehabilitation of the Fitchburg Commuter Rail Line, the MBTA is replacing the old railroad bridge over Route 62/Main Street in Concord with a new bridge to be rolled into place Saturday, August 29. The current bridge has low clearance and   …Continue Reading Concord: New MBTA Commuter Rail Bridge to Roll into Place This Weekend