Dayton Children's sells $235M in bonds to build new center, pay debt

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Dayton (Ohio) Children's Hospital expects to sell $235 million in hospital facilities revenue bonds to pay off existing debt and build a new five-story specialty care outpatient center, the Dayton Daily News reported Oct. 4.

The nonprofit hospital first took on debt in 2014 when it was approved to sell about $120 million in bonds for a new patient tower. The bonds were not sold publicly, but this time they will be.

About $100 million of the bond sales will be for the new center, and $150 million will pay off existing bond debt from 2014-16. The hospital received approval to sell a total of $290 worth of bonds.

The new center will reduce wait times and improve specialty care, officials said. It is under construction and is expected to be completed in 2023.

"One of the benefits of being a tax-exempt organization is we're able to actually sell tax-exempt bonds on our credit and generally get pretty low-cost financing," CFO Chris Bergman said. "It's like buying your house — you don't pay cash on your house because you are going to live in it a long time, and so you can have a 30-year mortgage on it."

He also said that he expects to make about $280 million out of the issuance from selling $235 million worth of bonds, which will go to repaying other projects.

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