Remarketing the bonds, which were previously issued by the Hospital Authority of Albany-Dougherty County, allows the hospital authority and health system to lower future interest costs on the $187.8 million outstanding debt balance from the bonds, according to the report.
The health system’s CFO, Kerry Loudermilk, said in the report that the 2008 issues, with Bank of America, totaled $90 million, while the 2010 issue, with JPMorgan Chase, totaled nearly $100 million.
Based on current rates, the health system expects to see “a 20-30 basis point spread reduction in proposed interest rates compared to existing rates associated with the current direct bond placements,” according to the report. That would mean a projected interest cost savings of $375,000 to $565,000 per year, the report reads.
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