April 14, 2021
The Michigan Strategic Fund (the "MSF") anticipates the issuance of one or more series of up to $700 million Limited Obligation Revenue Bonds (Federally Taxable) in June 2021. The proceeds of the bonds will be loaned to a "Special Purpose FWC Settlement Entity" and deposited into a "FWC Qualified Settlement Fund," each as defined by a settlement agreement and approval orders relating to In re Flint Water Cases, No. 5:16-cv-10444-JEL-MKM (ED Mich). The Special Purpose FWC Settlement Entity will use such proceeds and other funds on deposit in the FWC Qualified Settlement Fund to make timely payments as required in the settlement agreement. A settlement trust fund will be created in the Department of Treasury pursuant to the Michigan Trust Fund Act, Public Act 489 of 2000, as amended. State appropriations made for purposes of the order and any other such funds received by the State Treasurer for such purposes will be deposited in the settlement trust fund and will be paid solely to the Special Purpose FWC Settlement Entity. The final size and structure of the transaction have not yet been determined and are subject to change.
The MSF has engaged Citigroup Global Markets Inc. as book-running senior manager on the transaction and Siebert Williams Shank and Co. as co-senior manager. The appointment of co-managing underwriters, if any, will be made at a later date. The proposed bond issuance is on the agenda for the MSF board's consideration at the April 27, 2021 meeting. While it is the MSF's expectation to move forward with this transaction, it reserves the right to change or modify its plans as it deems appropriate.
This notice does not constitute an offer to sell or the solicitation of an offer to buy any securities. Any such offer or solicitation will only be made through a preliminary official statement. Investors should review the preliminary official statement before making any investment decision.
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