Fitch Rates Cleveland-Cuyahoga County Port Authority, Ohio Bond Fund Development Revs 'BBB+'.CHICAGO -- Fitch assigns a 'BBB+' rating to the Cleveland-Cuyahoga County Port Authority, Ohio (the authority) $9,500,000 development revenue bonds, series 2006A (Cavaliers Practice Facility Project) and $5,740,000 development revenue bonds, series 2006B (City of Perrysburg Project). Robert W. Baird Robert Wilson Baird (born April 1, 1883) helped found the financial services firm that bears his name and led it for more than 40 years. Baird’s father was a professor of Greek literature at Northwestern University in Evanston, Illinois, where Baird grew up. & Co. Inc. will offer the series 2006A and 2006B bonds during the weeks of November 13 and November 6, respectively. In addition, Fitch affirms the 'BBB+' rating on the authority's $74.9 million outstanding bond fund development revenue bonds. The Rating Outlook is Stable. The 'BBB+' rating reflects the bond fund's sizable reserves and satisfactory underwriting standards. While many of the fund's loans are to speculative grade borrowers, the program's reserve requirements Reserve Requirements Requirements regarding the amount of funds that banks must hold in reserve against deposits made by their customers. This money must be in the bank's vaults or at the closest Federal Reserve Bank. provide liquidity and first-loss protection to meet bond payments in the event a portion of the program's borrowers default on their loan repayments. The bond fund promotes economic development by loaning revenue bond proceeds to small- and medium-sized industrial, commercial, nonprofit enterprises and local governments primarily in Cuyahoga County. By entering into cooperative agreements with governmental entities, the authority can also make loans for the bond fund in various counties throughout the state. After theses issues, the bond fund will have 24 loans outstanding totaling $90 million. The City of Garfield Heights Garfield Heights, city (1990 pop. 31,739), Cuyahoga co., NE Ohio, a residential and industrial suburb adjacent to Cleveland; founded 1904, inc. 1932. It has oil refineries and a steel industry. and the Cleveland Cavaliers The Cleveland Cavaliers (also known as the Cavs) are a professional basketball team based in Cleveland, Ohio. They began playing in the National Basketball Association (NBA) as a 1970 expansion team and won their first Eastern Conference Championship in 2007. Practice Facility LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control represent the program's two largest borrowers, with loans outstanding of about $9 million each. All borrowers must establish a primary reserve equal to at least 10% of the original par amount of the loan. The series 2006A and 2006B reserve requirements will be met with qualified letters of credit (LOC LOC - lines of code ). In addition to the primary reserves totaling $10 million after these issues, program reserves total $13 million; program reserves are comprised of $4 million in cash and a $9 million irrevocable LOC from Fifth Third Bank. The LOC, which expires March 1, 2014, is extendable by mutual agreement every two years, and the bank's lien on bond fund collateral is subordinate to bondholders. Shortfalls in debt service payments would be made up first from draws on primary reserves of defaulting loans, then from draws on program reserves, and finally from pro rata [Latin, Proportionately.] A phrase that describes a division made according to a certain rate, percentage, or share. In a Bankruptcy case, when the debtor is insolvent, creditors generally agree to accept a pro rata share of what is owed to them. draws on remaining primary reserves. Total primary and program reserves equal $23 million, or 25% of total outstanding loan principal. The 2006A bond proceeds will fund a portion of the costs to construct a 50,000 square foot (sf) basketball practice and training facility located in Independence, Ohio for the Cleveland Cavaliers NBA NBA abbr. 1. National Basketball Association 2. National Boxing Association NBA (US) n abbr (= National Basketball Association) → Basketball-Dachverband (= team. The bonds are secured by lease payments from the Cavaliers Practice Facility and a leasehold mortgage in the project. The 2006B bond proceeds will be used to finance certain public roadway and parking improvements related to a 5.8 acre mixed use development known as Preston Place at Levis Commons, in Perrysburg, Ohio. Special assessments levied by the city against the property, equal to the debt service on the 2006B bonds, will be the primary security for the bonds. During construction of the project, the developer will provide a bank LOC to cover the bonds (minus primary reserves) through completion of the project. Furthermore, both bond issues are secured by the primary and program reserves mentioned above. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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