Bonds were placed with an institutional investor at a fixed rate of 4.75% for a 17.5-year term. The Bonds are secured by Tax Increment Financing (“TIF”) Net Service Payments, generated from the property taxes on the Private Development.
Roetzel and Andress served as Bond Counsel and DiPerna Advisors served as Financial Advisor for the project.
The Development Finance Authority, in cooperation with the State of Ohio, the Ohio Water Development Authority (OWDA) and Stark County Port Authority funded a 62,000 square foot production plant and warehouse expansion for Shearer’s Foods, Inc. in Massillon, Ohio. Additionally, the OWDA loan funded a portion of an onsite water treatment facility needed for the production of Shearer’s kettle style potato chips.
The Value Provided
Coordinating and closing three separate financing sources simultaneously and meeting the company’s project schedule.
Benefits of Working with us
The Development Finance Authority worked cooperatively with the Stark County Port to issue bonds within the DFA Jobs & Investment Bond Fund (Rated BBB+ by S&P) to fund a portion of the project. Additionally, the DFA worked closely with the State of Ohio and the OWDA to fund $5,900,000 of low interest rate loans. The expansion is expected to retain 105 jobs and create 31 new jobs at the project site over the next three years.
$4,000,000 DFA Jobs & Investment Bond Fund
$2,500,000 Chapter 166 Direct Loan
$3,400,000 OWDA Loan
$3,000,000 Shearer’s contribution
All in interest rate of approximately 5.00%