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.
Governor Patrick: Recommendation to Build MBTA Subway Cars in Massachusetts posted on Oct 21
Governor Deval Patrick today announced that the MBTA will present to the MassDOT Board of Directors the recommended company to manufacture and deliver 284 new subway cars for the Red and Orange Lines, replacing decades-old vehicles. Joined by MassDOT Secretary & CEO Richard A. Davey …Continue Reading Governor Patrick: Recommendation to Build MBTA Subway Cars in Massachusetts
Students Restore Historic Massachusetts Public Works Truck posted on Oct 21
A 1947 Ford dump truck with the proud historic logo “Massachusetts Department of Public Works” is now being restored by students at Bristol/Plymouth Regional Technical School in Taunton. MassDOT Secretary of Transportation Richard Davey visited the school to check on the students’ work and the …Continue Reading Students Restore Historic Massachusetts Public Works Truck
Celtics Forward Jared Sullinger Says: Sign Up for a Celtics Plate! posted on Oct 20
The Registry of Motor Vehicles’ new Boston Haymarket Center received a special visitor today: Boston Celtics forward Jared Sullinger. “Sully” joined Registrar Celia Blue to greet visitors, meet the staff, and encourage customers to sign up for the Boston Celtics Specialty License Plate. The Celtics …Continue Reading Celtics Forward Jared Sullinger Says: Sign Up for a Celtics Plate!