Tobacco Settlement Financing, R.I., prepares $593.66 million offering

By Sheri Kasprzak

New York, July 28 – The Tobacco Settlement Financing Corp. of Rhode Island is set to price $593,655,000 of series 2014 tobacco settlement asset-backed bonds, according to a preliminary official statement.

The bonds (/A/BBB+) will be sold on a negotiated basis with Citigroup Global Markets Inc. and BofA Merrill Lynch as the senior managers. The co-managers are Janney Montgomery Scott LLC, Oppenheimer & Co. Inc. and Raymond James/Morgan Keegan.

The deal includes $336,065,000 of series 2014A bonds and $257.59 million of series 2014B bonds.

The 2014A bonds are due 2015 to 2029 with term bonds due in 2034 and 2039. The 2014B bonds are due 2039, 2044 and 2049.

Proceeds will be used to make a payment of no less than $20 million to the state, refund the corporation’s series 2002A bonds and fund the purchase at the open market purchase price of certain maturities of the corporation’s series 2007 bonds.

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