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Rhode Island $618 Million Tobacco Bond Ends Seven-Month Wait

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Rhode Island is set to issue $618 million of tobacco bonds next week, ending a seven-month delay caused by a legal challenge from OppenheimerFunds Inc.

The Tobacco Settlement Financing Corp. will offer the debt March 10, according to Thomas Mullaney, executive director of Rhode Island’s office of management and budget. Proceeds will go to refinance previously issued tobacco securities and repurchase some debt issued in 2007, offering documents show. The deal also calls for paying some proceeds to the state. The result is that some investors would get paid after the state.