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Investment Banking

 

The Huntington Investment Company offers a wide range of Investment products and services such as Municipal Bond Underwriting, private placements and Letter of Credit backed bonds.

Municipal Bond Underwriting

We provide municipal bond and note underwriting for both taxable and tax-exempt transactions. Our experienced professionals have provided underwriting services to a wide variety of clients including state agencies, municipalities, school districts, universities, hospitals, utility systems, housing authorities, for profit and not for profit corporations. These financings include both negotiated and competitive fixed rate and variable rate issues.

Private Placements

Private placements allow for the placement of bonds, notes, and installment purchase contracts with high net worth investors whose investment objectives are designed specifically for securities sold through private placement rather than public sale. Private placement financing is available to health care organizations, higher education and K-12 institutions, non-profit corporations, and state and local governments.

Letter of Credit Backed Bonds

A Letter of Credit (LOC) is a commitment, usually issued by a bank, used to guarantee the payment of principal and interest on debt issues. The LOC is drawn if the issuer is unable to make the principal and/or interest payments on a timely basis.

The direct pay Letter of Credit attaches the bank's credit rating and financial strength to the bonds. Therefore the bonds can be marketed using the bank's financial information without having to supply any information about the obligor (customer). This can be accomplished because all principal and interest payments are made by drawing on the Letter of Credit issued by the bank.

The company then reimburses the bank for the draw on the Letter of Credit. The buyer of the bonds is willing to accept the low borrowing rate because it relies on the banks financial strength and the fact that all payments come directly from the bank.

A Letter of Credit backed bond transaction involves the following parties:

  • Issuer: Customer (if taxable) or Municipality, City, County or Authority (if tax-exempt)
  • Obligor: Customer (if tax-exempt)
  • Letter of Credit Issuing Bank: Underwrites and provides a Letter of Credit to act as credit enhancement for the issuance of the taxable or tax-exempt bonds.
  • Placement Agent: Investment banking group which structures the bond, coordinates the transaction and sells the bonds to investors.
  • Remarketing Agent: Responsible for negotiating weekly rates and remarketing the bonds if they should ever be “put” by the purchasers.
  • Trustee: Independent “money handler” acts as paying agent, registrar and calculates interest payments due each month.

For more information, call toll free 1-866-449-4133, Monday to Friday, 8:00am to 5:00pm ET.



Investment products and services are offered through The Huntington Investment Company, member FINRA/SIPC, a Registered Investment Advisor and a wholly-owned subsidiary of Huntington Bancshars Incorporated.

NOT A DEPOSIT NOT FDIC-INSURED NOT GUARANTEED BY THE BANK
NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE