LANSING ? Michigan Department of Treasury officials hope to be able to close $415 million in securitization of tobacco funds by August 20. The money will be pumped into the School Aid and general fund to help keep cash flowing.
The issue has been priced and the offering document, called in the bond and financial securities trade a “red herring,” is now available online.
The issue is set up as three different bond issues raising a total of $527.3 million from which the state intends to net $415 million which will be split between the School Aid Fund and the general fund.
The securitization was approved in May as part of the fix for the 2006-07 budget. Last month the Administrative Board gave its final approval for the securitization to go ahead.
Tom Saxton of the Department of Treasury said the department is moving as quickly as it can to get the funds into the state.
The money will also help with cash flow and help prevent the chance of any cash flow deficit. State officials were still were somewhat concerned about the possibility of a cash flow deficit occurring this month.
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