Presence Health closes on $1B bond sale

Presence Health has closed on a $1 billion bond sale, as the Chicago-based system works to shore up its finances.

Facilitated by the Illinois Finance Authority, the deal gives the 11-hospital system some breathing room following large operating losses last year.

Presence, which was formed in 2011 through the merger of Chicago-based Resurrection Healthcare and Mokena, Ill.-based Provena Health, reported an operating loss of $186 million in 2015, compared with an operating loss of $12.7 million the year prior. 

To address the system's financial troubles, Presence CEO Michael Englehart put a turnaround plan in place, which includes restructuring the system's balance sheet.

"We were very excited with how well our bond offering was received," said Mr. Englehart. "This was clear indication that our investors have full confidence that our turnaround plan is working, we have the right executive team in place, we are engaging the right industry experts, and we are carefully reviewing and restructuring our functional processes."

The proceeds of the bond offering will be used to refinance debt, including a $528.1 million bridge loan.

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