New Jersey Tobacco Settlement Bonds

CUSIP: 888808DF6

NAME: NJ Tobacco Settlement Bonds

COUPON: 5.00%

MATURITY: 6/1/2041

BONDHOLDER SECURITY: Asset securitization under the Master Settlement Agreement, (“MSA”).  See Obligor Profile below.

USE OF BOND PROCEEDS:  Refund all outstanding prior bonds, to fund a senior liquidity reserve, make a deposit into the Operating reserve and pay costs of issuance.

RATINGS: B3 (Moody’s)

OBLIGOR PROFILE: The MSA was entered into on November 23, 1998, among the attorneys general of 46 states (including the State), the District of Columbia, the Commonwealth of Puerto Rico, Guam, the U.S. Virgin Islands, American Samoa and the Commonwealth of the Northern Mariana Islands (collectively, the “Settling States”) and the then four largest U.S. tobacco manufacturers: Philip Morris Incorporated (“Philip Morris”), R.J. Reynolds Tobacco Company (“Reynolds Tobacco”), Brown & Williamson Tobacco Corporation (“B&W”) and Lorillard Tobacco Company (“Lorillard”).

The MSA resolved cigarette smoking-related litigation between the Settling States and the OPMs and released the OPMs from past and present smoking-related claims and provides for a continuing release of future smoking-related claims, in exchange for certain payments to be made to the Settling States.  MSA payments were set at roughly $9.0 billion per year over all 46 participating states, subject to annual adjustments for US cigarette consumption, inflation and other variables. The ratings for these securities among other things reflect the structure of the asset securitization as it relates to asset-back rating criteria and the creditworthiness of the corporations in question.


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Although this information is obtained from sources believed to be reliable, we cannot guarantee its completeness or accuracy.  For complete information regarding these bonds, please review the Official Statement, which can be provided upon request.  Investing in bonds involves risk including possible loss of principal.  Income may be subject to state, local, or federal alternative minimum tax.  Offerings are subject to prior sale and market conditions.  Bonds are subject to availability and price fluctuations.  As with any investment, market values may fluctuate during the period the bonds are held.  For specific yield and suitability of this offering, please contact your R. Seelaus & Co. Financial Advisor at 1-800-922-0584. Securities are offered through R. Seelaus & Co. 25 Deforest Ave. Suite 304, Summit, NJ 07901 Member FINRA/SIPC