Turnpike Warns Against Blocking Toll Hikes

The financially struggling Massachusetts Turnpike Authority could soon have to repay nearly $450 million in loans.

The money has to do with credit swap deals the agency arranged almost a decade ago. Those deals also established termination fees that rise and fall based on market conditions.

Turnpike Executive Director said Alan LeBovidge said Monday in a statement that the agency would have to pay $353 million in loans if the credit rating of the insurer of some loans from UBS is downgraded.

Another $76 million loan from bankrupt Lehman Bros. would have to be paid if the authority's credit rating drops.

The turnpike's board recently approved toll hikes to deal with the agency's debts.