The Rhode Island Turnpike and Bridge Authority has completed a bond refinancing that will generate approximately $11.6 million in gross savings, money the authority says will be redirected toward capital improvements across its bridge system.
The transaction, which closed July 9, refunded $86.19 million in outstanding Series 2016A Motor Fuel Tax Revenue Bonds and produced $6.6 million in net present value savings — representing 7.7 percent of the refunded bonds. A substantial share of the savings will be realized over the next two fiscal years: approximately $5.3 million in fiscal year 2027 and $4.3 million in fiscal year 2028.
“By taking advantage of favorable market conditions, we have reduced borrowing costs and created meaningful savings that can be reinvested directly into maintaining and improving the bridges entrusted to our care,” said RITBA Executive Director Lori Caron Silveira.
The bonds were issued with an insured AA rating from S&P Global Ratings. The authority’s underlying credit ratings were reaffirmed at A+ by S&P and A- by Fitch. The deal attracted strong investor demand, with 26 institutional investors placing 124 orders totaling more than $460 million, along with approximately $2.9 million in retail investor orders. The oversubscription allowed RITBA to reduce bond yields by 3 to 8 basis points, with an all-in true interest cost of 3.60 percent. Huntington Securities served as senior managing underwriter.
