By Cristal Cody
Springdale, Ark., Feb. 12 - Monongalia Health System priced $63.8 million variable-rate demand bonds on Tuesday, the issuer confirmed in an interview.
The Morgantown, W.Va.-based health care system priced $34.4 million series 2008A bonds and $14.7 million series 2008B bonds that were issued through the Monongalia County Building Commission. The system also sold $14.8 million taxable series 2008C bonds.
The 2008A and 2008B bonds priced with an initial 1.4% interest rate and the series 2008 C bonds priced with an initial 3.18% rate, said Nicholas Grubbs, chief financial officer for Monongalia Health System.
The bonds, insured by CIFG (AAA), are seven-day interest bonds with a 32-year maturity, Grubbs said.
Raymond James & Associates is the underwriter of the negotiated sale.
Proceeds will be used to reimburse for pension liabilities, finance hospital renovations and purchase new equipment.
| Issuer: | Monongalia Health System
|
| Issue: | Variable-rate demand bonds
|
| Type: | Negotiated
|
| Amount: | $62.8 million
|
| Rate set: | Weekly
|
| Maturity: | 2040
|
| Underwriter: | Raymond James & Associates
|
| Ratings: | S&P: AA
|
| Fitch: BBB+
|
| Pricing date: | Feb. 12
|
|
|
| Series 2008A/B bonds
|
| Amount: | $34.4 million series 2008A
|
| $14.7 million series 2008B |
|
| Initial Interest Rate: | 1.4%
|
|
|
| Series 2008C bonds (taxable)
|
| Amount: | $14.8 million series 2008C
|
| Initial Interest Rate: | 3.18%
|
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