Mushroom Leather Startup Tests Muni Risk Level (Correct)

A vegan-leather startup is slated to tap the municipal bond market this week, marking a test of investor confidence in speculative project finance.

MycoWorks Inc. — backed by Natalie Portman, John Legend and Decarbonization Partners — is offering a $73 million bond sale to develop a South Carolina factory that was shuttered last year due to a fungal contamination.

The unrated debt, sold by a subsidiary through a state agency, is expected to price on July 9, with early price talk suggests yields of 7.5% to 8% on the tax-exempt portion and 11.5% to 12% on the taxable side, ...