The Missouri agency tasked with maintaining the state’s roads sold $381.6 million in bonds to fund “mega projects” that improve state highways.
The bonds, issued by the Missouri Highways and Transportation Commission, mature between 2024 and 2026, yielding between 3.14% and 3.28%. They received a rating of Aa1 from Moody’s Investors Service, AA+ from S&P Global Ratings, and AA+ from Fitch Ratings.
“The Aa1 rating on the state appropriations mega projects state road bonds is notched once below the State of Missouri’s Aaa rating, reflecting the state’s appropriation pledge, the contingent nature of annual appropriations, and the more essential nature of the highway projects,” Moody’s analysts wrote.
The bond proceeds will finance the widening of Interstate 70 and other road improvements. I-70 runs east-west across the middle of Missouri and connects its two biggest cities, Kansas City and St. Louis. In addition to adding a third lane to the highway, the bonds will fund modernization efforts for existing pavement and bridges.
“The overall goal of the I-70 Project is to provide safe, efficient, environmentally sound and cost-effective transportation facilities that responds to corridor needs as well as expectations of a national interstate,” according to the official statement accompanying the sale of the bonds.
The bonds are special obligations of the commission, payable by pledged appropriations from the state and some highway toll revenue.
J.P. Morgan Securities LLC served as lead underwriter on the issuance.