The refunding came from tax-exempt, fixed-rate bonds privately placed with two commercial banks for a five-year term and 25-year amortization, with an interest rate of less than 5 percent, according to Lancaster Pollard, an investment and mortgage banking firm.
In 2007, the district funded a renovation project through a letter of credit enhanced tax-exempt bond issue. The letter of credit was acquired by a foreign-based bank, and the district was unable to extend it. To address the upcoming bank term expiration and restructure existing indebtedness, Lancaster Pollard negotiated a fixed rate purchase with a regional bank.
“The restructuring was very beneficial to the hospital as it allowed us to refund our debt on the best terms possible,” Randy Dauby, CEO of Hamilton Memorial Hospital, said in the release. “The bonds were purchased by a bank team that included our local bank and a reputable regional bank, with which we had not previously had a relationship. The participants in the transaction were a good fit for our needs as a critical access hospital.”
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