WASHINGTON — More than a dozen additional Wisconsin issuers have recently disclosed that they can redeem their Build America Bonds and other direct-pay bonds because of sequestration-mandated cuts in their federal subsidy payments.The issuers made the disclosures in event notices filed with the Municipal Securities Rulemaking Board's EMMA system since the middle of August.

The congressionally-mandated sequestration that began March 1 reduced the Treasury's subsidy payments to issuers of Build America Bonds and other direct-pay bonds. Those cuts triggered the extraordinary redemption provisions in bond documents, allowing the issuers to redeem their bonds. Generally, these issuers can redeem their direct-pay bonds at any time in the future. They can wait until it is financially advantageous for them to refund the taxable direct-pay bonds with tax-exempt bonds.

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