Tobacco Securitization



Our tobacco securitization team, assisted by firm attorneys versed in other forms of securitization, brings a depth of understanding to each financing or refinancing that few firms can match.

Our approach

As one of the most active firms involved in the securitization of tobacco settlement revenue, we’re familiar with all of the structures as well as the types of issuers. Our tobacco financing team is made up of a dozen dedicated attorneys.

We face and successfully address all the issues that arise in these transactions, including:

  • Tax issues relating to use of proceeds
  • Structuring assumptions
  • Flexible and fixed amortization structures
  • Tobacco industry and litigation risk
  • Bankruptcy issues

We work on all of the structures of tobacco settlement bond issues that have been developed to date (e.g., full or partial turbo redemption, residual).

They have had different credit rating goals and involve every conceivable use of proceeds (e.g., capital, working capital, refunding/defeasance). They also use different types of issuers (e.g., local nonprofit corporation, state public authority, joint powers agency, public trust).

Who we work with

  • Special purpose authorities
  • State and local governments
  • Underwriters

Recent experience

  • Minnesota Tobacco Securitization Authority: Served as Disclosure Counsel for the $756,955,000 Minnesota Tobacco Settlement Revenue Bonds, Series 2011.
  • Railsplitter Tobacco Settlement Authority: Served as Bond Counsel for the $1,503,460,000 Tobacco Settlement Bonds Series 2010.

Contacts

Kenneth C. Lind

Partner
Practice Group Leader, Public Finance

klind@nixonpeabody.com

Phone: 212-940-3005

Scott R. Singer

Partner

ssinger@nixonpeabody.com

Phone: 212-940-3182

Virginia Wong

Partner

vwong@nixonpeabody.com

Phone: 212-940-3028

Elizabeth M. Columbo

Partner

ecolumbo@nixonpeabody.com

Phone: 212-940-3183

  • Recognized by U.S. News-Best Lawyers 2016 as a national Tier 1 leader for Public Finance Law
  • “Deal of the Year” for Health Care Financing by The Bond Buyer for Presence Health Network 2016 bond offering
  • Consistently ranked by Thomson Reuters among the top bond counsel and underwriter’s counsel in the country, and among the most active disclosure and special tax counsel
  • Project Finance magazine’s “North America Leisure Deal of the Year 2006” for the financings in connection with Yankee Stadium and Citi Field
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