| State officials had planned to offer about 700 (m) million dollars in bonds about two years ago. But the tobacco bond market sank after an Illinois judge ordered Richmond-based Philip Morris U-S-A to pay just over ten (b) billion dollars in a suit over its "lights" cigarettes.
The market has improved, and the state wants to sell between 400 (m) million and 450 (m) million dollars in tax-exempt bonds. They would be backed by 25 percent of Virginia's annual payments from the 1998 Master Settlement Agreement with Philip Morris, R-J Reynolds, Brown and Williamson and Lorillard.
Virginia's tobacco commission plans to vote tomorrow on endorsing next month's sale.
The Tobacco Settlement Financing Corporation -- an independent state entity authorized to sell the bonds -- gave its approval yesterday.
State Treasurer Jody Wagner says the proposal must also be approved by Governor Mark Warner. |
