Loma Linda (Calif.) Medical Center will sell $883 million in bonds Wednesday to finance structural updates to its facilities in accordance with California's seismic safety requirements, reports Bloomberg.
Below are four things to know.
1. Loma Linda said it will use proceeds from the sale to finance the bulk of its $1 billion expansion project, which will add 983,000 square feet of space and bring the facility into compliance with seismic safety rules that take effect January 2020.
2. The sale is expected to double Loma Linda's current debt.
3. Some credit rating agencies have downgraded Loma Linda's rating because of the significant increase of its debt. This month, Standard & Poor's Rating Services lowered its rating on the hospital to "BB" from "BB+".
4. The securities will only be sold to qualified institutional buyers, such as mutual-fund managers, because of the "material degree of risk," according to offering documents obtained by Bloomberg.