Port Authority issues $8 million bond to Materion Brush Inc.Written by Duane Ramsey | | firstname.lastname@example.org
The Toledo-Lucas County Port Authority announced June 20 that it has issued an $8 million taxable bond within the Northwest Ohio Bond Fund Program to Materion Brush Inc. for expansion of its manufacturing operations in Elmore, Ohio.
Materion Brush, formerly know as Brush Wellman Inc., used the bonds to acquire a 125,400 square-foot facility and to purchase new machinery and equipment for it.
The 10-year bond, which closed at the end of April 2011, has a fixed interest rate of 4.9 percent, according to the Port Authority.
Materion Brush, a wholly-owned entity of Materion Corporation based in Cleveland, is a fully integrated supplier of engineered beryllium materials to growing international markets, according to the press release from the Port Authority.
Officials from the company could not be reached for comment about the bonds or the project financed by them.
The company’s flagship manufacturing facility is located on a 480-acre site in Harris Township outside Elmore in Ottawa County. The plant presently employs about 600 employees in the 865,000 square-foot facility that began operations in 1953.
Brush Engineered Materials Inc. announced March 8 that it officially changed its name to Materion Corporation. The company’s common stock now trades under the symbol MTRN on the New York Stock Exchange.
Materion supplies highly-engineered, advanced materials to leading and dynamic technology companies around the globe. It’s the only beryllium producer in the world taking beryllium from the mine through the mill, according to the company.
Materion serves customers in more than 50 countries in North America, Europe and Asia and employs approximately 2,500 people worldwide according to their website, www.materion.com.
The Northwest Ohio Bond Fund finances projects from $1 to $8 million with fixed interest rates for the full term of the bonds. A typical transaction consists of 90 percent financing and 10 percent equity, according to the Port Authority.
The Northwest Ohio Bond Fund provides companies with access to the national capital market as if they were BBB Investment Grade companies. Its portfolio of projects includes BAX Global, Nagel Trucking, Dana, Owens Corning, Xunlight, and the Toledo School for the Arts.
“Since the inception in 1988, the Port Authority has issued more than $215 million in financing from the Northwest Ohio Bond Fund,” Paul Toth, president and CEO of the Toledo-Lucas County Port Authority, stated in the press release.
“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 reserve funds to cure a default,” Toth stated.
The Port Authority recently 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 through the U.S. Department of Energy.
The Toledo-Lucas County Port Authority was the first port authority in Ohio to create a bond fund, according to the press release.
Port authorities were originally formed to oversee maritime and airport assets, but they have evolved into economic development agencies that fund job-generating projects. Port authorities are empowered by state law to play a role in forming public-private partnerships to finance business growth and economic development in Ohio.
The Northwest Ohio Bond Fund is one of only three bond funds in the state rated by Standard & Poor’s. It was given a BBB rating with stable outlook in August 2010, according to the press release.
The Port Authority has developed a national reputation for innovative business financing by 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, according to the press release.