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Ohio Cuts Yields on Record $5.5 Billion Muni Tobacco Bond Deal 

Ohio raised $5.5 billion today in the state's biggest tax-exempt bond offering, selling debt backed by future settlement payments from cigarette makers to fund current capital needs for education.

The state-run Buckeye Tobacco Settlement Financing Authority sold senior-lien and subordinate-lien bonds, including fixed-rate securities with an average 19-year life at a 6.07 percent yield. Bear Stearns Cos. and Citigroup Inc. managed the largest long- term municipal-bond sale in three years.

Ohio got enough demand for the senior bonds to raise prices and cut yields by 1 to 5 basis points from initial pricing earlier today.

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