The triple-A bond ratings Moody’s Investors Service and Standard & Poor’s assigned to the Massachusetts’ accelerated bridge program’s recent $419 million bond sale saved an estimated $23.5 million in overall borrowing costs, according to state officials.
“We did better than other similarly rated states that recently sold these types of bonds, indicating a high level of confidence among lenders in the financial health of the commonwealth,” Treasurer Steven Grossman said in a statement.
JPMorgan was the low bidder on the competitive deal, at an average borrowing cost of 3.315%, beating out seven other firms. As a result of the aggressive bids, interest on the bonds will be about $23.5 million lower than the commonwealth had anticipated over the 29-year borrowing cycle associated with the sale.
Proceeds will primarily fund the construction and repair of the five largest bridges in the program, including the Longfellow Bridge in Boston, the Route 79/I-195 interchange in Fall River, the Fore River Bridge in Quincy, the Burns Memorial Bridge in Shrewsbury, and the Whittier Bridge in Amesbury and Newburyport.