Massachusetts and UBS Securities LLC will continue negotiations involving a $207.6 million Massachusetts Turnpike Authority swap agreement as both parties last week agreed to extend further discussion on the derivative until Sept. 11.
Officials had until Aug. 21 to cure a possible $67 million termination payment on the swap, but opted to push that deadline to Sept. 11 since a resolution has yet to be reached, according to Cyndi Roy, spokeswoman for the Executive Office of Administration and Finance. The office is undertaking the discussions with UBS on behalf of MassPike.
The $207.6 million swap, which is attached to Series 1997A senior bonds, is the final piece among five floating-to-fixed-rate derivatives with UBS that total $800 million. The four other swaps are connected to MassPike's subordinate debt. Recent credit upgrades to the authority's subordinate bonds allowed the authority to stave off a $190 million termination payment to UBS.
