Massachusetts sold $806.2 million in bonds to finance a variety of capital improvements.
The state issued the bonds in two series. The 2024 Series B bonds, consisting of $750 million, mature between 2026 and 2054, yielding between 3.06% and 4.02%. The 2024 Series C bonds, consisting of $56.2 million, mature between 2031 and 2033, yielding between 3.07% and 3.08%. All of the bonds pay interest at 5%. The securities received a rating of AA+ from Fitch Ratings, Aa1 from Moody’s Investors Service, and AA+ from S&P Global Ratings.
The rating “reflects a robust economic base, bolstered by social factors such as a highly educated workforce and high income levels, that help the state meet the demands of an elevated long-term liability burden,” Moody’s analysts wrote.
The state will use the bond proceeds to fund projects in its capital improvement program, which calls for $14 billion in spending over the next five years. The plan is primarily funded by general obligation bonds.
The Series 2024 bonds are general obligations of the state, backed by its full faith and credit. The state has budgeted a total of $2.9 billion in bond cap spending for this fiscal year, according to its capital plan.
Morgan Stanley & Co LLC served as lead underwriter on the issuance. PFM Financial Advisors LLC acted as municipal advisor.