MSBA Announces $766 Million Bond Refunding Transaction
State Treasurer Steven Grossman, Chairman of the Massachusetts School Building Authority (MSBA), and Jack McCarthy, MSBA Executive Director, today announced that the MSBA issued more than $766 million in refunding bonds to lower the MSBA’s outstanding debt service payments on its Series 2005A bonds. The refunding results in gross debt service savings of $77 million over the next 17 years for the MSBA.
“This bond refunding is great news for the MSBA, but the ultimate beneficiaries here are the school children of Massachusetts,” said Grossman. “This deal frees up more capital to be directed toward school renovation, repair and construction projects that will provide our students with first-class learning environments to best prepare them for the competitive challenges ahead.”
The savings realized through the transaction are due not only to favorable market conditions, but also to the competitive ratings assigned to the bonds. The bonds are rated AA+, Aa1, and AA+ by Fitch, Moody’s, and Standard and Poor’s, respectively.
“The savings derived from this refunding will assist the Authority with improving the teaching and learning environments for students across the Commonwealth and allow the MSBA to continue to fund school building construction projects in a highly cost-effective way,” Executive Director McCarthy said.
The MSBA partners with Massachusetts communities to support the design and construction of educationally-appropriate, flexible, sustainable, and cost-effective public school facilities. Since its creation, the MSBA has made more than $8.8 billion in timely payments to cities, towns, and regional school districts for school construction projects. These timely payments have saved municipalities over $2.9 billion in avoided local interest costs and have provided much needed cash flow to communities.
Legal Disclaimer: Under no circumstances does the information in this press release or on this website constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Massachusetts School Building Authority, Senior Dedicated Sales Tax Refunding Bonds, 2012 Series A in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. Offers to purchase the Series A Bonds may be made only through a registered broker-dealer and through an Official Statement.