Cuyahoga County, Ohio’s most populous, plans to offer about $231 million in certificates of participation today to fund a new convention center hotel in Cleveland.
The tax-exempt debt will be backed by lease payments to the Cleveland-Cuyahoga County Port Authority from sources including county general-revenue funds, said Timothy Offtermatt of Stifel, Nicolaus & Co. in Cleveland, the senior manager on the deal.
The county plans to build a 600-room hotel next to the Cleveland Convention Center and Global Center for Health Innovation that will be managed by Hilton Worldwide Holdings Inc. (HLT:US), according to an offering statement. The new Hilton Cleveland/Downtown is expected to open by 2016, the county said.
Moody’s Investors Service assigned the debt an Aa3 rating, its fourth-highest level of investment grade, while Standard & Poor’s ranked it an equivalent AA-.
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