For Immediate Release
Thursday, 22 March 2001
TOBACCO MONEY IS IN THE BANK
Almost $800 Million Flows Into State Trust Accounts
Columbia, SC – Today, almost $800 million was placed into trust accounts as the tobacco bonds were finalized – $573.6 million will go to health care needs. "This is the biggest single bond issue in South Carolina history – and the largest tobacco bond issue ever," State Treasurer Grady L. Patterson, Jr. declared. The bonds were issued by securing the tobacco revenue stream guaranteed to the State of South Carolina by the Master Settlement Agreement.
"The money is here and we will begin reaping interest from it immediately," said Mr. Patterson.
The funds realized will follow a formula advocated by Governor James H. Hodges and approved by the Legislature. The money will be placed into the following accounts:
"Such huge sums of money were generated, today. … Our team knew the significance of structuring a billion dollar plan," Mr. Patterson declared. "This is a great financial package that will positively impact the health and well-being of South Carolinians for generations."
Mr. Patterson concluded: "The benefits of this money will be staggering if – and only if – we zealously ensure that it is used for its intended purpose – not to fill gaps in funding, but to meet needs that we’ve been unable to address before."
Haynsworth Sinkler Boyd of South Carolina served as Bond Counsel for the Tobacco Issue and Public Resources Advisory Group served as Financial Advisor.
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David A. Adams, 803/734-0380