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Homes and Community Renewal

NYS Tobacco Settlement Financing Corporation (TSFC) authorizes issuance of refunding bonds

FOR IMMEDIATE RELEASE
Monday, November 18, 2013

Tobacco Settlement Financing Corporation
www.nyshcr.org

Contact:
HCR Press Office
pressoffice@nyshcr.org
212-872-0338

 

NYS TOBACCO SETTLEMENT FINANCING CORPORATION (TSFC) AUTHORIZES ISSUANCE OF REFUNDING BONDS

The New York State Tobacco Settlement Financing Corporation (TSFC), a subsidiary of the State of New York Municipal Bond Bank Agency, at a meeting of its Board of Directors this month authorized the issuance of economic refunding bonds (the “Refunding Bonds”) to redeem at par certain of its outstanding bonds. This issuance in the approximate amount of $1.2 billion provides an opportunity to refund higher-interest bonds and replace them with lower-cost debt, generating 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 will result in the redemption of a portion or all of the bonds to be refunded in December 2013.

The Refunding Bonds are expected to mature on June 1, 2018 through and including June 1, 2022 and are expected to be subject to optional redemption prior to maturity with first optional redemption dates ranging from June 1, 2014 through and including June 1, 2017, depending on the specific bonds. The maturity dates and redemption dates of the Refunding Bonds are preliminary and subject to change.

The issuance and the timing of the Refunding Bonds are subject to certain conditions, including but not limited to market conditions and 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 Citigroup with Barclays and Ramirez & Co., Inc as co-senior managers.

 

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The Tobacco Settlement Financing Corporation, a New York State public benefit corporation, was created to purchase New York State’s share of the tobacco settlement revenues.  The TSFC is located within New York State Homes & Community Renewal (NYSHCR), which consists of all of the State's major housing and community renewal agencies, including the Housing Finance Agency, the Affordable Housing Corporation, the Division of Housing and Community Renewal, State of New York Mortgage Agency, Housing Trust Fund Corporation and others. HCR is committed to collaborating with partners, and keeping homes affordable and communities strong by protecting one million rent-regulated units, managing a portfolio of more than 190,000 multifamily units and administering more than $1.5 billion each year to expand affordable housing opportunities and build strong communities throughout New York State. For additional information visit our web site: http://www.nyshcr.org/.

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This press release is intended as general information regarding TSFC’s issuance of Refunding Bonds and should not be considered an offer to sell or a solicitation of an offer to buy 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.  While planning to move forward with this transaction, TSFC reserves the right to change or modify its plan, as necessary.

 

 

Last Updated: 11/18/13