CHICAGO - On the heels of the sale of a financially troubled borrower to a for-profit buyer, the Cleveland-Cuyahoga County Port Authority is dipping into its reserves and taking out a short-term bank loan in order to redeem $5.7 million in tax-exempt bonds issued on behalf of the borrower.

The bond redemption comes after a for-profit group last week purchased Myers University, a formerly nonprofit school located in downtown Cleveland. The debt-ridden university almost closed its doors last December, and narrowly avoided defaulting on the $5.7 million loan from the port authority at the time.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.