Massachusetts Water Pollution Abatement Trust Bonds Rated AAA
Ratings will Save Millions in Upcoming Bond Transaction
Treasurer Steven Grossman today announced that the Massachusetts Water Pollution Abatement Trust (MWPAT) has received AAA ratings from all three rating agencies for a $561.24 million bond refunding deal. The independent findings distinguish the MWPAT as having the highest bond rating of any state agency in the Commonwealth.
“The AAA rating on this bond deal will allow us to borrow at a very low cost and free up money for even more critical water infrastructure projects across the Commonwealth,” said Steven Grossman who oversees the MWPAT. “We’re delighted that additional cities and towns will be able to benefit from the revenue that is generated.”
The MWPAT will sell the State Revolving Fund Refunding Bonds, Series 2014, as tax-exempt fixed-rate bonds structured with maturities in years 2015-2031. Individual investors will be given the first opportunity to buy the bonds during a special retail order period on Wednesday, May 28, 2014. Institutional pricing will take place on Thursday, May 29, 2014.
The proceeds of the bond sale will be used to refinance outstanding MWPAT bonds and take advantage of current market rates to generate debt service savings. The bonds will be sold via a negotiated sale through MWPAT’s underwriting syndicate senior-managed by Bank of America Merrill Lynch.
The MWPAT lends financial assistance to the Commonwealth by providing subsidized loans to cities and towns for clean water and drinking water infrastructure development. Since its establishment in 1989, the Trust has loaned $6 billion to improve and maintain the quality of water in the Commonwealth. An estimated 97% of Massachusetts’ citizens have benefited from the MWPAT’s financial assistance.