The Massachusetts School Building Authority has completed its $142 million sale of federally subsidized qualified school construction bonds.
The agency will use the sale proceeds to fund grants to local districts for construction and renovation of public schools statewide, with an emphasis on energy-efficiency.
The bonds are secured by a 1-cent pledge from the 6.25-cent state sales tax after payment of the MSBA’s senior-lien dedicated tax bonds.
Moody’s Investors Service assigned the subordinated bonds a Aa2 rating. Fitch Ratings and Standard & Poor’s have assigned an equivalent AA.
The QSCB program began in 2009 as part of the American Recovery and Reinvestment Act, which authorized $22 billion of debt to be issued during 2009 and 2010. Some issuers are still selling their unused allocations of bonds.