Rhode Island has already securitized 100% of the payments it receives from tobacco companies under the 1998 Master Settlement Agreement. Nevertheless, the state has found a way, with the help of Citigroup Global Markets, to refinance the debt and take some more money off the table.

The state’s Tobacco Settlement Financing Corporation is offering $593 million of new bonds backed by payments from participating tobacco manufacturers under the Master Settlement Agreement. Proceeds will be used to redeem approximately $523 million of tobacco settlement bonds outstanding that it issued in 2002, repurchase some of the notes issued in 2007, and make a payment of at least $20 million to the state, according to the prospectus.

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