California’s $1.8 Billion Taxable Tobacco Bond Is Largest Ever
- Golden State Tobacco sale Sept. 30 will refund older debt
- State pledges to pay debt service if tobacco revenue falters
Photographer: Luke Sharrett/Bloomberg
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California, through the Golden State Tobacco Securitization Corporation, is getting ready to sell $1.8 billion of high-grade bonds on Sept. 30 to refinance older debt backed by the landmark tobacco settlement, according to deal documents.
The bonds are federally taxable but exempt from California income taxes. Jefferies and Citigroup act as joint senior managers.