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Homes and Community Renewal

NYS Tobacco Settlement Financing Corporation (TSFC) Authorizes Issuance of Refunding Bonds

NEW YORK -- Tuesday, June 14, 2011 -- The New York State Tobacco Settlement Financing Corporation (TSFC), a subsidiary of the State of New York Municipal Bond Bank Agency, resolved at a meeting of its Board of Directors today to authorize the issuance of economic refunding bonds (the "Refunding Bonds") to redeem at par certain of its outstanding bonds. In the current low-interest rate environment, this issuance provides an opportunity to refund higher-interest bonds and replace them with lower-cost debt, generating substantial future savings to the State of New York.

The bonds that are being considered for refunding are outstanding Tobacco Settlement Financing Corporation Asset-Backed Revenue Bonds, Series 2003A-1C (State Contingency Contract Secured) and outstanding Tobacco Settlement Financing Corporation Asset-Backed Revenue Bonds, Series 2003B-1C (State Contingency Contract Secured).

The refunding may result in the redemption of a portion or all of the bonds to be refunded on one or more dates beginning on or about July 22, 2011.

Should TSFC decide to issue the Refunding Bonds in the expected approximate amount of $975 million, the issuance and the timing are subject to certain conditions, including but not limited to relevant financial considerations, and to the approval by the New York State Comptroller and by the Director of the Budget of the State of New York.

The Refunding Bonds are expected to be underwritten by a syndicate led by Barclays Capital with Citi, M.R Beal & Co. and Goldman Sachs & Co. as co-senior managers.

The Tobacco Settlement Financing Corporation, a New York State public benefit corporation, was created in 2003 to purchase New York State's share of the tobacco settlement revenues. The TSFC is located within New York State Homes and Community Renewal (NYSHCR), which consists of all the State's major housing and community renewal agencies, including the Affordable Housing Corporation, the Division of Housing and Community Renewal, Housing Finance Agency, State of New York Mortgage Agency, and the Housing Trust Fund Corporation, among others.


This press release is intended as general information regarding TSFC's issuance of Refunding Bonds and should not be considered an offering of securities. Investors should consider the risks carefully before investing in the Refunding Bonds. These risks and other information will be contained in the Official Statement that will be prepared by TSFC in connection with the sale of the Refunding Bonds

Last Updated: 06/14/2011