California State Treasurer Fiona Ma, chair of the California Well being Services Financing Authority (CHFFA), introduced approval of as much as $376 million in tax-exempt and taxable conduit income bonds for PIH Well being, Inc. (PIH) to finance the renovation, enlargement and equipping of a number of well being amenities in Los Angeles County. PIH additionally will use the bond proceeds to refinance present excellent debt, together with that of Good Samaritan Hospital, because it has lately joined PIH’s community.
“This bond will end in a big financial savings to the hospital because of the refinancing of earlier debt, resulting in an elevated capacity to provide again to the group by means of monetary help, unreimbursed prices of public packages, and thru different group advantages,” mentioned Treasurer Ma.
“PIH Well being, Inc. will renovate and increase hospital house and substitute previous, outdated gear, resulting in an enchancment in healthcare high quality and entry,” mentioned Frank Moore, CHFFA Government Director.
By issuing by means of CHFFA, PIH intends to make the most of the very low borrowing charges within the present fixed-rate municipal market and restructure excellent debt for an estimated current worth financial savings of roughly $eight million. PIH plans to go to marketplace for the bond sale the week of September 14, 2020.
PIH is a nonprofit, regional healthcare community with three hospitals, numerous outpatient medical places of work, a multispecialty medical group, dwelling healthcare providers and hospice care, in addition to coronary heart, most cancers and emergency providers. The workers of over 5,100 serve greater than two million residents in Los Angeles and Orange Counties.
PIH’s tasks will enhance the vary of care accessed by the extra two million residents by increasing and equipping usable house for numerous providers together with emergency care, hospital-based wellness care, transitional care and different specialised providers. The tasks additionally will assist a number of of its well being amenities meet seismic requirements.
Particularly, these bond funds shall be used to refinance three excellent Metropolis of Whittier Well being Facility Income Bonds and two time period loans in addition to for facility enhancements, buy of kit at three hospitals within the system – the Whittier Campus, the Downey Campus, and Good Samaritan Hospital, and to finance the price of issuing the bonds.
The CHFFA Bond Financing Program offers eligible well being amenities with entry to low rate of interest capital markets by means of the issuance of tax-exempt and taxable income bonds. Bond proceeds fund development or renovation tasks, land or present constructing acquisition for future tasks, refinancing of present debt, working capital for start-up amenities, and prices of bond issuance.
Since inception in 1979, CHFFA has issued almost 560 bonds for greater than $42 billion to California well being establishments by offering entry to low rate of interest capital markets by means of the issuance of tax-exempt and taxable bonds. For extra info on CHFFA’s Bond Financing Program, to use for bond financing by means of CHFFA, or to study different funding alternatives, please go to CHFFA’s website.
This text was launched by the California State Treasurer’s Office.
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