Sylacauga Health Care Authority, Ala., looks to defease 2005-A bonds

By Marisa Wong

Madison, Wis., June 18 – The Sylacauga Health Care Authority of Alabama said it is working on a refinancing transaction relating to the possible defeasance of its $54.44 million series 2005-A bonds.

The outstanding 2005-A bonds include $7,835,000 of 5.375% bonds due Aug. 1, 2015, $16.51 million of 6% bonds due Aug. 1, 2025 and $30,095,000 of 6% bonds due Aug. 1, 2035.

The authority said the United States Department of Housing and Urban Development has agreed to provide assistance under its Section 242 Mortgage Insurance program for the advance refunding of the 2005-A bonds.

After receiving the commitment from HUD, the issuer began working on establishing a defeasance escrow with trustee U.S. Bank, NA.

The defeasance escrow would provide for the payment of principal and interest on the bonds through Aug. 1, 2015 and the redemption price for the bonds maturing after Aug. 1, 2015.

The 2025 and 2035 bonds are callable, in whole or in part, at par plus accrued interest beginning Aug. 1, 2015.

The refinancing transaction is expected to be completed on or before July 31.

The authority operates Coosa Valley Medical Center in Sylacauga, Ala.

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