Port Authority to provide up to $50 million in financing for The Andersons’ new headquarters facility
TOLEDO, Ohio, February 27, 2015 – The Toledo-Lucas County Port Authority Board of Directors yesterday approved a lease agreement with The Andersons, Inc. to acquire and construct an approximately 130,000 square foot corporate headquarters facility in northwest Ohio through a number of Port Authority financing mechanisms totaling up to $50 million.
Posted on Friday, February 27, 2015
“The Port Authority was able to secure the necessary financing in order to help move The Andersons’ headquarters relocation project forward,” said Paul Toth, President and CEO of the Toledo-Lucas County Port Authority. “By relocating and expanding its headquarters due to the financing mechanisms in place, The Andersons will be able to not only retain existing jobs in the community, but will also be able to create new ones. We are proud to partner with The Andersons on this project.”
The Port Authority will issue up to $10 million in taxable development revenue bonds through its Northwest Ohio Bond Fund program, up to $35 million in lease revenue bonds that will be sold to a commercial bank or into the capital markets, and JobsOhio is recommending a $5 million 166 Direct Loan (contingent upon Controlling Board approval), all of which will be used by the Port Authority to construct the new facility.
The Port Authority will lease the facility to The Andersons under a 15-year capital lease in exchange for lease rental payments to pay the debt service on the Northwest Ohio Bond Fund bonds, the lease revenue bonds and the 166 loan recommended by JobsOhio. Upon retirement of all debt, The Andersons will have an option to acquire the facility.
“We are fortunate to have received support from several area governmental organizations, including the Toledo-Lucas County Port Authority, as we’ve pursued the construction of our new corporate headquarters,” says Hal Reed, COO of The Andersons. “We appreciate the opportunities that are available for a project of this size.”
The Toledo-Lucas County Port Authority’s Northwest Ohio Bond Fund rating is currently an ‘A-’, which was increased from a ‘BBB+’ last year. The Northwest Ohio Bond Fund program 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 have included Owens Corning, HCR Manor Care, Dana Holding Corporation, Nagle Trucking, Toledo School for the Arts, and many other local and regional companies.
The Toledo-Lucas County Port Authority has developed a national reputation for innovative business financing, assisting over 340 economic development projects representing a total investment of more than $1.9 billion, while helping to create and retain nearly 18,500 jobs.
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