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

North Side Commuter Rail Schedule Implementation Postponed posted on Nov 25

North Side Commuter Rail Schedule Implementation Postponed

  MassDOT and the MBTA announced the recently revised North Side Commuter Rail schedules will not be implemented until spring 2016. The revision of Commuter Rail schedules is a critical element of MassDOT and the MBTA’s efforts to deliver safe, reliable, on-time service to Commuter   …Continue Reading North Side Commuter Rail Schedule Implementation Postponed

Travel Safely for Thanksgiving! posted on Nov 24

Travel Safely for Thanksgiving!

MassDOT encourages Thanksgiving holiday travelers to plan ahead with high traffic volume on our highways and at Boston Logan International Airport expected again this year. Highways are typically busiest on the Tuesday and Wednesday before and on the Sunday after the holiday.  Heavy traffic congestion   …Continue Reading Travel Safely for Thanksgiving!

Springfield: I-91 Viaduct Project Public Meeting Set posted on Nov 23

Springfield: I-91 Viaduct Project Public Meeting Set

MassDOT has scheduled a Public Information Meeting for the I-91 Viaduct Rehabilitation Project as follows: Tuesday, December 8, 6:30 PM to 8:30 PM, Basketball Hall of Fame, Theater, 1000 Hall of Fame Avenue, Springfield Please join MassDOT for an update on the major construction and   …Continue Reading Springfield: I-91 Viaduct Project Public Meeting Set