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The news comes as lawmakers moved to freeze a $100 million toll hike that Pike officials say is needed to stave off the loan payments.
"While the recent toll increase will stabilize the Turnpike's finances and limit its exposure in one of these swap deals, there is still exposure of upwards of $350 million in termination payments that could be triggered if Ambac, the troubled insurer of the UBS deal, is downgraded further," Pike Executive Director said Alan LeBovidge in a statement.
The recent tumultuous market has put Pike officials on edge because, under complex loans worked out earlier this decade, investment banks could demand the debt-riddled agency cough up the payments if Ambac, which was downgraded last week, is downgraded again.
Another loan from Lehman Bros. could be threatened if the $100 million coming from the toll hike is delayed.
Reps. David Linsky (D-Natick) and Steve M. Walsh (D-Lynn), who have moved to freeze the toll hike, said a comprehensive plan to battle the Pike's debt should be in place by April, when the tolls were scheduled to kick in.
Lawmakers approved an $800 million bailout earlier this year that prevented the Pike from paying $2 million a year on the loans, but didn't address the hefty termination payment threats.
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