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.
MassDOT Reminder: Safe Winter Driving Tips! posted on Feb 4
With snow in the forecast, MassDOT reminds motorists to plan ahead, avoid travel during the snow event when possible, and be prepared for Winter Travel! Be sure to Prepare Your Vehicle For Winter Driving and bring Winter Car Supplies. Use Common Sense While Driving Near …Continue Reading MassDOT Reminder: Safe Winter Driving Tips!
MassDOT Innovation & Tech Transfer Exchange: March 8-9 posted on Feb 3
You are invited to share and learn the newest ideas in transportation technology by attending MassDOT’s Innovation & Tech Transfer Exchange for 2016, scheduled for March 8 & 9, at the DCU Center in Worcester. Are you wondering how to improve both the efficiency and …Continue Reading MassDOT Innovation & Tech Transfer Exchange: March 8-9
Baker-Polito Administration Launches Complete Streets Funding Program posted on Feb 1
The Baker-Polito Administration and Massachusetts Department of Transportation today announced a $12.5 million Complete Streets Funding Program and online program portal in an effort to encourage cities and towns in the Commonwealth to design and construct projects to make street networks safer and more efficient …Continue Reading Baker-Polito Administration Launches Complete Streets Funding Program