Funding for the loan took the form of $28.6 million Recovery Zone Economic Development Bonds, which provides a 45 percent federal subsidy to reimburse Effingham’s annual interest cost. Taxable bonds funded the remaining loan amount of $2.3 million.
With FHA 242 Mortgage Insurance guaranteeing Effingham’s loan and Ginnie Mae securities collateralizing the debt, Effingham’s Series 2010 bonds received Standard and Poor’s highest credit rating of “AAA.” The combination of “AAA” rating and a 45 percent interest rate subsidy produced a record low net interest rate for Effingham of 3.63 percent.
The modernization projects being funded by the loan include the renovation and expansion of the hospital’s current facility as well as the construction of a clinical services facility adjacent to the main facility for surgery, imaging and the emergency department, among other services.
Read the release on Effingham Hospital (pdf).
Read more coverage on Georgia hospitals:
– Georgia’s Memorial Health Fires CEO Over Health System’s Finances
– Phoebe Putney’s Acquisition of Georgia’s Palmyra Medical Center May Close Next Month
– Georgia’s Brunswick Hospital to Construct $10.9M Orthopedic and Spine Center
