PROVIDENCE – The R.I. Turnpike and Bridge Authority announced the pricing of two bond issues this week, which it said will result in generating $50 million for bridge maintenance and a savings for the department of more than $9 million.
The first bond issue, backed by the Motor Fuel Tax Allocation, will fund $50 million of projects already approved by RITBA as part of its Renewal and Replacement Plan, including work on the Newport Pell Bridge. RITBA said those projects total more than $200 million in costs. The bonds were issued a rating of A/A+ by Fitch and Standard & Poor’s.
“The authority’s Motor Fuel Tax Bonds generated more than 264 orders from 64 separate investors totaling over $512 million,” said RITBA Chief Financial Officer Maggie Baker in a statement. “The great reception enabled the group to lower interest rates in every maturity, on average 9 basis points. This is a great result and speaks well of RITBA’s reputation in the market.”
The authority also refinanced the remaining balance of its 2010 Toll Revenue Bonds, lowering interest rates from 5% to 3.15%, which it said will save RITBA roughly $425,000 in annual debt service, or $9 million over the life of the bond. RITBA said the savings translates into $6.6 million in net present value.
The closing for the bond sales is scheduled for December.
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