Timeline set for $220M liquor revenue bond
The state will sell a $220 million bond, backed by revenue from renegotiating the state’s wholesale liquor distribution contract this fall, to make $183.5 million in late payments to hospitals in the state.
The Portland Press Herald reported the Maine Municipal Bond Bank plans to issue the bond next week after getting high marks from debt-ratings agencies Standard and Poor’s and Moody’s Investors Service. S&P gave the bonds an “A+” rating, with a stable outlook, and Moody’s gave the bonds an “A1” rating, with a stable outlook.
The state’s payment of its debt to hospitals will trigger a federal match of $305 million owed for treatment of patients through MaineCare, the state’s Medicaid program.
State officials expect bids for the new liquor contract to be issued in September, with the contractor beginning operations on July 1, 2014.
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