The 20-hospital system recently sold about $720 million of fixed-rate, tax-exempt bonds to refinance $1.1 billion of debt. UPMC also intends to terminate 10 of 14 derivatives it used to help manage interest-rate risk on its debt.
Upcoming refinancing by not-for-profit hospitals includes:
- North Carolina Baptist Hospital, which plans to refinance all of its debt by selling $330 million in fixed-rate bonds.
- Owensboro (Ky.) Medical Health System, which will offer about $545 million of tax-exempt bonds to finance a 447-bed replacement hospital and refinance its existing auction-rate bonds.
The Bond Buyer 25 index reported that benchmark borrowing costs for 30-year revenue bonds now stand at 4.96 percent.
Read Business Week’s report on not-for-profit hospital refinancing.
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