Posted on Wednesday, June 04, 2014
“We are very excited to report on this historic upgrade to our Northwest Ohio Bond Fund, which is the first time in its 26-year history that we have achieved a rating in the “A” Category,” said Paul Toth, President and CEO of the Toledo-Lucas County Port Authority. “By being recognized as an “A-” investment-grade rated bond fund, we are now able to offer more competitive rates for borrowers looking for long-term fixed-rate financing.”
The Port Authority’s Northwest Ohio Bond Fund was established in 1988, and has allowed the Port Authority to help finance new business and business expansion in northwest Ohio. Its portfolio of projects includes Owens Corning, HCR Manor Care, Dana Holding Corporation, Nagle Trucking, Toledo School for the Arts, and many other local and regional companies.
The Northwest Ohio Bond Fund provides financing for projects from $2 million to $9 million, and fixed interest rates for the full term of bonds. A typical transaction is usually 90% financing and 10% equity. The fund typically provides up to 20-year financing for land and (owner-occupied) building projects, and financing up to 10 years for equipment. The Northwest Ohio Bond Fund issues tax-exempt bonds for manufacturing, non-profit 501(c)3 and governmental operations, and taxable bonds for all other projects.
Key factors contributing to the S&P “A-” upgrade include a zero percent default rate to bondholders that have provided over $250 million in bond financing for sixty-four (64) projects since the inception of the Northwest Ohio Bond Fund. In addition, the Northwest Ohio Bond Fund has a current reserve-to-loan ratio of 50 percent, made possible by contributions from Ohio Manufacturers Association and Lucas County, the latter of which provided a $2 million investment in 2011 to help the Port Authority achieve this goal.
The Toledo-Lucas County Port Authority has developed a national reputation for innovative business financing, assisting more than 340 economic development projects representing a total investment of more than $1.8 billion while helping to create and retain more than 18,500 jobs. The Northwest Ohio Bond Fund is one of several financing mechanisms available through the Toledo-Lucas County Port Authority.
It is the mission of the Toledo-Lucas County Port Authority to continuously focus on job creation by leveraging our strategic geographic position, resources and economic development proficiency to provide increased business opportunities—built upon and around our innovative transportation and logistics expertise—while promoting our community and region within the global marketplace. We will accomplish this through unmatched speed and efficiency of service, collaborative and strategic partnerships, community stewardship and the continued generation and execution of new ideas and innovations. www.toledoportauthority.org – 419.243.8251
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