Projects
ASC Industries
Green, Ohio
ASC Industries manufactures water pumps for the automotive and truck industry with facilities in the U.S. and China. Since 1999, ASC’s headquarters has been located in CAK Industrial Park, Green, Ohio. The company's steadily growing business has necessitated an 80,000-square-foot addition to the Green, Ohio plant.
The Challenge:
Find tax-efficient financing manufacturing facility expansion.
Benefits of Working with SCPA
The SCPA has extensive experience in structuring capital leases.
ASC gains tax advantages and nominal-cost ownership options from capital leasing.
SCPA conduit financing resulted in a reduced interest rate.
SCPA involvement exempted the project from sales tax on materials, saving $161,000.
Project Cost: $7.25 million
Source Funds:
$7,250,000 - Summit County Port Authority IRB
Interest Rate:
The Summit County Port Authority issued Industrial Revenue Bonds on behalf of ASC. Fifth Third Bank secured the conduit financing with a letter of credit. The SCPA structured a capital lease. Under the terms of the lease, the assets accrue to ASC’s balance sheet as the lease payments service the debt. This allows ASC to claim asset depreciation for tax purposes. ASC also has the option to take full ownership of the property at the end of the lease term for a nominal cost.
