Cleveland Clinic to borrow $530M to fund London hospital

Cleveland Clinic expects to open a new hospital in London in 2021, and the health system plans to privately place bonds denominated in pound sterling for the equivalent of approximately $530 million to finance the new hospital, according to The Bond Buyer.

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Bond proceeds will be used to refinance a $375 million bridge loan Cleveland Clinic put in place when it purchased the facility in London. The remaining proceeds will be used to turn the building into a hospital.

Cleveland Clinic CFO Steven Glass said the debt will be placed with U.K. and U.S. investors.

“We actually think this is going to be a very attractive sell in the marketplace,” Mr. Glass told The Bond Buyer. “Cleveland Clinic is a AA-rated organization, so while we are issuing these notes under what is Cleveland Clinic UK holdings company, that issuance is guaranteed by the Cleveland Clinic — so that is going to be very attractive in the marketplace.”

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