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Article: Bon Secours Health Systems Hopes To Save With Refunding, Rate Swap.
- Article from:
- The Bond Buyer
- Article date:
- December 2, 2002
- Author:
CopyrightCOPYRIGHT 2002 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Marriottsville, Md.-based Bon Secours Health Systems Inc. will reap $40 million in immediate savings by refinancing $790 million of higher cost debt in a pair of transactions this month that include an interest rate swap.
The multi-state health system, which has operations in Eastern and Midwestern states, is selling $370.5 million of Series 2002A uninsured advance refunding bonds later this week and $422.9 million of Series 2002B insured new debt later this month. Proceeds from the Series B bonds will be put in a trustee-held construction fund that cannot be drawn down without Bon Secours using cash to defease other insured debt.
Bon Secours officials ...