Massachusetts to Sell $490.7 Million of Bonds for Train Projects, Refunding

By Josh Beckerman

Massachusetts plans to sell $490.7 million of municipal bonds to pay for a series of rail projects and refund existing debt.

Retail and institutional ordering is set for Oct. 1 and Oct. 2, respectively. The securities are scheduled for delivery on Oct. 17.

The sale includes $150 million of Series A Commonwealth Transportation Fund Revenue Bonds with maturities ranging from 2044 through 2053, will go to fund rail projects, according to documents posted Monday on MuniOS. The commonwealth will also sell $215.7 million of Series A Commonwealth Transportation Fund Revenue Refunding Bonds maturities ranging from 2025 through 2044. Maturities from the Series 2014 A and Series 2017 A are expected to refunded with the proceeds.

Massachusetts will also sell $125 million of Transportation Fund Revenue Bonds Series B designated as sustainability bonds and due in 2054. Money from the sale will be used for the South Coast Rail project, which will serve areas that historically haven't had to fast and reliable public transit, according to the roadshow document. The project will eventually connect Boston with New Bedford, Fall River and Taunton.

The bonds are payable from pledged funds, the primary sources for which are Motors Fuels Tax revenue and registry fees.

The bonds are rated Aa1 by Moody's Investors Service and AAA by S&P Global Ratings.

BofA Securities is senior manager.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

September 23, 2024 19:14 ET (23:14 GMT)

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