ST. PAUL, Minn. - Minnesota Management and Budget announced that Minnesota sold $656 million in state appropriation bonds to refinance the tobacco settlement revenue bonds previously sold in November of 2011.
The refinancing will save the state $85 million in present value. The appropriation bonds received a true interest rate of 2.43 percent.
The Tobacco Securitization Authority originally sold $757 million dollars of revenue bonds with $640 million in proceeds being applied to the state budget in this biennium.
The original sale was done on a negotiated basis after a competitive selection of the underwriting team and received a true interest rate of 4.75 percent.
The transaction was overseen by MMB Assistant Commissioner Kristin Hanson.
"We were in the market at a very favorable time," Hanson said. "The deal worked because of the quick response from our partners throughout state government, and we are thrilled to save the state tens of millions of dollars."
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