2010-04-08 / News

RITBA sells $50 million in revenue bonds

The R.I. Turnpike and Bridge Authority recently sold $50 million of toll revenue bonds at a true interest cost (TIC) of 5.01%, said David Darlington, chairman of RITBA.

“We are very pleased that investors have shown their support for RITBA by purchasing the bonds,” he said.

This was the first time that RITBA bonds were available for purchase by individuals, as well as institutional investors. The yield to investors ranges from 3.77% in 2018 to 5.20% in 2039.

“Market rates actually increased in the general market over the past three days, but the RITBA bonds were sold at rates lower than projected due to the momentum gained from about $40 million in retail orders,” Darlington said. “Our financing team reports that this is the most retail interest shown in a Rhode Island issue in recent memory.”

The Series 2010 A bonds are being issued to fund part of the maintenance and repair needs of the Newport Pell and Mount Hope Bridges. In September, 2009, the RITBA board approved a five-year renewal and replacement plan that identified $124 million of major expenditures needed to extend the life of both bridges.

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