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TREASURER’S OFFICE REFINANCING OF TOBACCO BONDS SAVES STATE $235 MILLION

July 24, 2008
TREASURER’S OFFICE REFINANCING OF TOBACCO BONDS SAVES STATE $235 MILLION
Savings will occur over ten-year period
(Columbia, SC)….State Treasurer Converse Chellis this morning released information regarding the refinancing
of $785 million in Series 2001 Tobacco Bonds for the State of South Carolina. The refinancing, which occurred
over a three month period, will save the State $235 million over a ten-year period.
“This is like refinancing your home, going from a thirty-year mortgage to a fifteen-year mortgage and still
lowering your payments,” said State Treasurer Chellis.
Treasurer Chellis had suggested to the Tobacco Settlement Revenue Management Authority (TSRMA)
on March 18th that the refinancing of the Bonds may be of benefit to the State.
Chellis will notify the TSRMA today on the refinancing. The Authority consists of the five members of the
State’s Budget and Control Board.
Chellis said, “To refinance a deal of this magnitude took a great deal of work, but in the end the tremendous
savings realized will be beneficial to the taxpayers. This comes at a good time for our State because of this
week’s news of a $180 million revenue shortfall.”
The Treasurer will provide the Authority with a comprehensive report detailing the implementation, structure and
outcome of this very complex transaction.
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One Comment leave one →
  1. December 15, 2008 6:53 pm

    Thanks for the update! Very intriguing news, and 235 mil is nothing to cough at

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