TOLEDO, Ohio, June 20, 2011 – The Toledo-Lucas County Port Authority has issued an $8 million taxable bond within the Northwest Ohio Bond Fund Program to Materion Brush Inc., formerly known as Brush Wellman Inc. The bonds were used to acquire a 125,400 square foot facility and for the purchase of new machinery and equipment. The 10-year bond, which closed at the end of April 2011, has a fixed interest rate of 4.90 percent.
Materion Brush Inc., a business entity of Materion Corporation, is a fully integrated supplier of engineered beryllium materials to growing international markets. Its flagship manufacturing facility located in Elmore, Ohio is situated on a 480-acre site in Harris Township, Ottawa County, Ohio. Presently, the plant employs about 600 employees and has 865,000 square feet under roof. The Elmore facility began operations in 1953.
The Toledo-Lucas County Port Authority has developed a national reputation for innovative business financing, assisting more than 300 economic development projects representing a total investment of more than $1 billion while helping to create and retain more than 16,000 jobs.
“Since the inception in 1988, the Port Authority has issued more than $215 million in financing from the Northwest Ohio Bond Fund and over the 23-year history of the bond fund, no bonds have ever been in default and the program has never had to use the program reserve funds to cure a default,” said Paul Toth, President and CEO for the Toledo-Lucas County Port Authority. “In fact we have had a 25 to 30 percent 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 reserve funds 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 Toledo-Lucas County Port Authority was the first Port Authority in the state of Ohio to create a bond fund, and the Northwest Ohio Bond Fund is one of only three bond funds in the state currently rated by Standard and Poor’s. In August 2010, Standard and Poor’s released a BBB rating with Stable Outlook for the Northwest Ohio Bond Fund.
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.
The Northwest Ohio Bond Fund provides 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, Owens Corning, Dana and several other companies located within Ohio.
The Northwest Ohio Bond Fund finances projects from $1 to $8 million and fixed interest rates for full term of the bonds. A typical transaction consists of 90 percent financing and 10 percent equity. Terms include 20 years financing for land and buildings, and up to 10 years for equipment. Tax exempt bonds are available for manufacturing, non-profit 501(c)3 and governmental operations, and are taxable 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.
More Information on Materion Brush Inc.
Materion Brush Inc. is a wholly owned business entity of Materion Corporation with its headquarters in Cleveland, Ohio. It’s the only fully-integrated beryllium producer in the world taking beryllium from the mine through the mill. Materion Brush Inc. has manufacturing and distribution centers in 11 states and several international service/distribution centers overseas.
Metals produced at the Elmore plant can be found in end-use products in industries such as telecommunications and computer, automotive electronics, industrial components, optical media, aerospace, and defense and appliance. Its unique properties — light weight; strength; good electrical and thermal conductivity; fatigue resistance; wear and corrosion resistance — makes it the material of choice for many important uses in today’s society.
Materion Corporation supplies highly engineered advanced enabling materials to leading and dynamic technology companies across the globe. Founded in 1931, the company today serves customers in more than 50 countries throughout North America, Europe and Asia, and employs approximately 2,500 people worldwide.
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. www.toledoportauthority.org --- 419-243-8251
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