The deadline has been extended to negotiate a settlement on a $207.6 million swap agreement between UBS Securities LLC and the Massachusetts Turnpike Authority as it seeks to avoid paying a swap termination fee to the investment bank.
Massachusetts, which is conducting the negotiations on MassPike’s behalf, now has until Oct. 2 to reach a solution involving the floating- to fixed-rate derivative attached to Series 1997A senior bonds, said Cyndi Roy, spokeswoman for the Executive Office of Administration and Finance. The prior deadline was Sept. 11.
Credit upgrades to the authority’s subordinate debt in mid-July helped resolve a termination event on four floating- to fixed-rate swaps, halting a potential $190 million termination payment to UBS.
