Toledo, OH – Aug. 20, 2010 – Standards and Poor’s (S&P) announced a BBB investment-grade rating with Stable Outlook on Friday for the Northwest Ohio Bond Fund, which is administered by the Toledo-Lucas County Port Authority. The Toledo-Lucas County Port Authority has been working with S&P since the start of 2010 to establish this rating.
“We are very pleased to be associated with this top financial rating agency and are satisfied with this investment-grade rating of BBB with Stable Outlook for the Northwest Ohio Bond Fund,” said Paul Toth, President and CEO of the Toledo-Lucas County Port Authority. “The backing of an investment-grade rating from S&P reflects the integrity and overwhelmingly strong historical performance of our portfolio.”
The Toledo-Lucas County Port Authority has developed a national reputation for innovative business financing, assisting close to 300 economic development projects representing a total investment of more than $1 billion while helping to create and retain more than 15,500 jobs. The Northwest Ohio Bond Fund is one of several financing mechanisms available through the Toledo-Lucas County Port Authority.
While Port Authorities were originally formed to oversee a community’s maritime and airport assets, over time they have diversified and evolved into valuable economic development agencies for communities looking to fund job-generating projects. Port Authorities have been empowered by state law to play an important role in forming public-private partnerships to finance business growth and economic development in Ohio. Bonds are purchased by private investors and the Port Authority ensures that each bond issue is safeguarded, providing a gateway to capital markets that does not rely upon taxpayer funds.
“Since the inception in 1988, the Port Authority has issued more than $202 million in bonds and over the 22-year history of the bond fund, no bonds have ever been in default and the program has never had to use the program reserve fund to cure a default,” added Toth. “In fact we have had a 25 to 30% debt service reserve cushion over the life of the Northwest Ohio Bond Fund. Recently, we have increased the Bond Fund Program Reserve by depositing over $12 million in additional cash through a partnership with the Ohio Manufacturers Association, Lucas County and a Federal Grant procured through the U.S. Department of Energy, which will specifically allow us to leverage the bond fund to provide financing for much needed energy efficiency and alternative energy projects throughout northwest Ohio”
The Northwest Ohio Bond Fund provides small and medium sized companies access to the national capital market as if they were BBB Investment Grade companies. Its portfolio of projects includes entities such as the Cleveland Cavaliers, BAX Global, Nagel Trucking, Toledo School for the Arts, Xunlight, Dana and several other companies located within Ohio.
The Northwest Ohio Bond Fund provides financing for projects from $1 to $8 million and fixed interest rates for full term of the bonds. A typical transaction is usually 90% financing and 10% equity. The fund provides 20-year financing for land and buildings, 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.
Additional financial tools available from the Toledo-Lucas County Port Authority include Infrastructure Financing; Conduit Revenue Bonds; the Ohio 166 Regional Loan Program and the U.S. Small Business Administration 504 Loan Program.
Initial project information forms are needed to determine whether a project meets the requirements of the Toledo-Lucas County Port Authority financing programs. This form is available at
www.toledoportauthority.org. A preliminary determination can traditionally be made within five business days. Additional information regarding the financing programs is available from Lisa Wagner,
lwagner@toledoportauthority.org or Laurie Cantrell,
lcantrell@toledoportauthority.org or by calling the Toledo-Lucas County Port Authority at 419-243-8251.
Standard & Poor’s is known to investors worldwide as a leader of financial-market intelligence, with offices in 23 countries and a history that dates back 150 years. Most notably, S&P is known as an independent provider of credit ratings. In 2009, the company published more than 870,000 new and revised credits ratings. Currently, S&P rates more than $32 trillion (US) in outstanding debt. S&P is also known for maintaining one of the most widely followed indices of large-cap American stocks: the S&P 500. Moreover, Standard & Poor’s independent equity research business is among the world’s leading providers of independent investment information, offering fundamental coverage on approximately 2,000 stocks. S&P is also a leader in mutual fund information and analysis.
It is the mission of the Toledo-Lucas County Port Authority to continuously leverage 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.