New York's Mount Sinai Refinances $331M Debt at Low Rate

Tags: debt | hospital | Mount Sinai | New York | Standard and Poors

New York's 1,171-bed Mount Sinai Hospital refinanced some $331 million at a discounted rate compared to those of its peers, spurred by an improved credit rating and borrowing costs on tax-exempt debt that were at a nine-week low, according to a report by Bloomberg.

The securities were upgraded one level to A- by Standard and Poor's last week and were mostly tax-exempt securities sold at a 4.15-percent yield on notes maturing in 2020. That represents a 0.32 percentage point discount to top-rated hospital debt, according to the Bloomberg report.

Don Scanlon, Mount Sinai's CFO, said the hospital refinanced because the rates were low and the bonds could be bought back before they mature, according to Bloomberg.  

Citing strong financial performance and growth potential, S&P boosted Mount Sinai's revenue bonds a level to A- from BBB+ on May 21.

The securities, mostly issued through the New York Dormitory Authority, will refinance debt that Mount Sinai issued in 2000.

Read the Bloomberg report on the Mount Sinai debt refinance.

© Copyright ASC COMMUNICATIONS 2012. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.