Together the Ohio Department of Development (ODOD) and the Finance Authority entered into a purchase/leaseback incentive package for STAR Dynamics Corporation. The ODOD provided a $3 million Research and Development Loan to the Finance Authority for the purchase of a revolutionary technology XSTAR radar system developed by STAR Dynamics. The Finance Authority is leasing the radar equipment back to STAR Dynamics over a seven-year term, with STAR purchasing the equipment at the end of the lease term for $1. The company will create 20 new full-time jobs within three years and retain 81 jobs.
“Speed has been of the essence in closing on this financing. We have strong customer demand for our products and need to fully develop our next generation of radar systems. Working diligently with the Ohio Department of Development, the Finance Authority was able to accommodate our very demanding timeframe. We could not have done it without their help and cooperation.” Kevin Collis, CFO, STAR Dynamics.
Founded in 1988 as an Ohio corporation, STAR Dynamics has become the world’s leading supplier of ultra-wideband precision instrumentation radars. STAR Dynamics is located in Hilliard, Ohio with an open-air radar test facility based at Darby Dan airport. The company has a well-established focus in three primary defense-related radar technology business areas including: (1) Radar Signature Measurement Systems used in the low-observable “Stealth” industry, (2) Flight Test Range Instrumentation Radar Systems used in open-air missile test ranges, and (3) Surveillance and Airborne Radar Systems for long range defense surveillance applications.
The state-sponsored project will enable STAR to expand its research and development efforts to evolve and enhance the performance of its unique radar technology. The funds will primarily be used to continue the development and commercialization of its next generation XSTAR precision, multi-target tracking radar system. The company is projecting significant growth over the next few years driven by the Department of Defense modernization plans to replace aged, old-technology radar systems at many of its domestic flight test ranges, as well as expanding global markets for this technology.
“The Finance Authority has partnered with the State of Ohio on a half dozen projects over the past two years. Together we have helped companies get access to desperately needed capital, allowing them to upgrade products, meet customer demands and create jobs for Central Ohioans.” Jean Carter Ryan, Executive Director, Columbus-Franklin County Finance Authority.
The Finance Authority has issued $301 million in financing, closing on 21 projects that invest more than $362 million and create over 1,515 jobs in Central Ohio.
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