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The Commonwealth of Massachusetts General Obligation Bonds and Refunding Bonds

We are pleased to announce that Fidelity Capital Markets has been chosen as a co-manager for the Commonwealth of Massachusetts's upcoming $939 million1 general obligation bonds sale.

The Commonwealth of Massachusetts is expected to come to market with $250 million1 in General Obligation Bonds, 2015 Series C, and $689 million1 in General Obligation Refunding Bonds, 2015 Series A. The proceeds from the 2015 Series C Bonds will be used to finance or reimburse the Commonwealth for a variety of projects included in the Commonwealth's Five Year Capital Investment Plan. The proceeds from the 2015 Series A Bonds will be used to refund certain bonds outstanding and pay costs of issuance.

The Bonds are general obligations of the Commonwealth to which its full faith and credit will be pledged for the payment of principal and interest when due.

For information regarding the statutory limit on state tax revenue growth, please see the Preliminary Official Statement (PDF).

Key benefits

The bond sale offers several attractive benefits for individual investors who are residents of Massachusetts, including federal- and state-level tax-exemption on the bonds, prices, and yields that match those available to institutional investors, and the potential for stable income. The most current pricing and credit information can be found on our New Issue PageLog In Required.

How to place an order

The transaction is expected to price the week of June 221 and individual investors can place their orders onlineLog In Required or by calling a Fidelity representative at 800-460-5848. Please note that the transaction's timeline may be subject to change due market conditions, the discretion of the issuer, or allocation of the bonds.

You can easily stay up to date on the offering by signing up for Fidelity alerts. We'll notify you of any changes in timeline, pricing, and more.

Additional resources

Municipal Bonds
Review the risks and benefits of investing in municipal bonds.

Municipal Bonds: Understanding Credit Risk (PDF)
Learn more about assessing credit risks when purchasing municipal bonds in this SEC investor bulletin.

Investing in a volatile bond market
Get the latest insights on the bond market, outlook for future rates, and investment strategies from Fidelity Viewpoints®.

Three reasons to consider munis now
Higher tax rates, relative interest rates, and diversification may make munis worth a look.

This information does not constitute an offer of any securities for sale.
1. Preliminary, subject to change
Interest income earned from tax-exempt municipal securities generally is exempt from federal income tax, and may also be exempt from state and local income taxes if you are a resident in the state of issuance. A portion of the income you receive may be subject to federal and state income taxes, including the federal alternative minimum tax. Before making any investment, you should review the official statement for the relevant offering for additional tax and other considerations.
The municipal market can be adversely affected by tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Investing in municipal bonds for the purpose of generating tax-exempt income may not be appropriate for investors in all tax brackets or for all account types. Tax laws are subject to change and the preferential tax treatment of municipal bond interest income may be revoked or phased out for investors at certain income levels. You should consult your tax adviser regarding your specific situation.
In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk, liquidity risk, call risk and credit and default risks for both issuers and counterparties.
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Bond

an interest-bearing security for which the issuer agrees to pay the bondholder a specified sum of money, usually at specific intervals (known as a coupon), and to repay the principal amount of the loan at maturity; Zero-coupon bonds pay both the imputed interest and the principal at maturity

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maturity, maturity date(s)

the date on which the principal amount of a fixed income security is scheduled to become due and payable, typically along with any final coupon payment. It is also a list of the maturity dates on which individual bonds issued as part of a new issue municipal bond offering will mature

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Moody's

an independent organization that assigns credit ratings to debt instruments and securities to help investors assess credit risk

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Standard & Poor's (S&P) Corporation

an independent company that provides investors with market intelligence in the form of credit ratings, indices, investment research and risk evaluations and solutions

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yield

the percentage of return an investor receives based on the amount invested or on the current market value of holdings; it is expressed as an annual percentage rate; yield stated is the yield to worst — the yield if the worst possible bond repayment takes place, reflecting the lower of the yield to maturity or the yield to call based on the previous close