Massachusetts School Building
Authority Subordinated Dedicated
Sales Tax Bonds, 2018 Series A

Massachusetts School Building Authority

Invest in Massachusetts schools and earn tax-exempt income. The Massachusetts School Building Authority provides funding to schools for projects such as building repair and renovation. As of January 1, 2018, the Board had approved project closeout audits for 424 new projects.


Issuance characteristics
  • Refunding
  • Contains callable maturities
  • Federally tax exempt
  • Revenue
  • Competitive sale

About this bond issuance

  • Purpose

    The School Building Authority provides funding to schools for projects such as building repair and renovation. Applicants must submit proposals to the Authority, which then determines whether there is a need for the improvements. As of January 2018, the Authority has entered into feasibility study agreement and project funding agreements with applicants for 663 new projects. Proceeds from this issuance will be used to refund outstanding commercial paper and pay for the cost of issuance.

  • Obligor

    Massachusetts School Building Authority

  • Issuer

    Massachusetts School Building Authority

  • Authority

    The Authority has the power to issue general obligation or revenue bonds for any purpose of the Authority, and may secure its bonds with a pledge of revenues or funds of the Authority, including amounts on deposit in the SMART Fund. The Act currently provides that the aggregate principal amount of all bonds issued by the Authority shall not exceed $10 billion outstanding at any time; provided, however, that the principal amount of Authority bonds for which refunding bonds have been issued shall be excluded from this limitation. As of December 15, 2017, the Authority had approximately $5.5 billion of Bonds outstanding and $450 million of CP Notes outstanding. Subject to the Trust Agreement, there can be no assurance that the Authority will issue less than the amount of bonds authorized by the Act.

  • Security

    Dedicated sales tax revenue, SMART Fund

  • Trustee

    The Bank of New York Mellon Trust Company, N.A.

  • Investor roadshow

    Investor roadshow: available here

Ratings

Ratings

AA

S&P

Aa3

Moody's

AA+

Fitch

Financing team

Neighborly Securities
Neighborly is a selling group member on this issuance.