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Port of Cincinnati Issues $318 Million in Bonds

By Munichain News Desk
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The Port of Greater Cincinnati Development Authority sold $317.5 million in bonds to finance renovations to the city’s convention center and refund previously issued securities.

The authority issued the bonds in three series. The Series 2024A bonds, consisting of $57.3 million, mature between 2024 and 2063, yielding between 3.03% and 4.38%. The Series 2024B bonds, consisting of $216.4 million, mature between 2025 and 2063, yielding between 3.21% and 4.56%. The Series 2024C bonds, consisting of $43.9 million, mature between 2029 and 2063, yielding between 3.32% and 4.52%. 

The Series 2024A bonds received a rating of Aa3 from Moody’s Investors Service and AA from S&P Global Ratings. The Series 2024B bonds received an insured rating of A1 from Moody’s and AA from S&P, and an underlying rating of A2 from Moody’s and A- from S&P. The Series 2024C bonds received an insured rating of A1 from Moody’s and AA from S&P, and an underlying rating of A3 from Moody’s and BBB from S&P.

Moody’s analysts wrote that their rating on the Series 2024A bonds reflects a “historically strong demand for hotel rooms.” They added that the lower ratings on the Series 2024B and Series 2024C bonds reflects respectively subordinate liens on the revenue securing those issuances.

The port authority will use the bond proceeds to fund part of the $240 million upgrade Cincinnati is planning for the Duke Energy Convention Center in the city’s downtown. The city’s destination marketing organization says that when renovations are complete the space will be “one of the premier convention centers in the Midwest.”

The bonds are special, limited obligations of the port authority, payable by taxes that the city levies on hotel rooms. The Series 2024A bonds are secured by a lien on this revenue. The Series 2024B bonds are secured by a second lien, and the Series 2024C bonds are secured by a third lien.

BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $332.9 million. The price reflected a premium of more than $15 million. DiPerna & Company, LLC acted as financial advisor to the port authority, and PFM Financial Advisors LLC acted as financial advisor to Hamilton County, which includes Cincinnati.


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