At least five issuers in Minnesota and Illinois recently disclosed that they may redeem a total of $128.44 million of Build America Bonds because sequestration-imposed cuts in the federal subsidy payments they receive triggered the extraordinary redemption provisions in their bond documents.

However, the North Carolina Turnpike Authority indicated the cuts in subsidy payments will not cause it to redeem $352.67 million of Series 2009B Triangle Expressway state appropriation revenue BABs and $233.92 million of Series 2010A Monroe Connector state appropriation revenue BABs.

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