CHICAGO — Minnesota aims to cast off headline risks tied to the tobacco sector next week when it sells $787.6 million of tobacco bonds by using a conservative structure that limits final maturities and ensures bondholders are paid even if cigarette consumption dips far more annually than expected.

The state also has stressed with investors that it is one of four states that entered into its own agreement with major tobacco companies to settle health care claims. Unlike the 1998 Master Settlement Agreement between tobacco companies and most states, Minnesota's agreement insulates its payments from any adjustment due to market share losses suffered by the major tobacco companies to non-participating manufacturers. No provision for the loss of market share is included in Minnesota's pact.

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