Franklin County, Ohio, seeks consents from OPRS Communities bondholders to omit lease section

By Wendy Van Sickle

Columbus, Ohio, April 21 – Franklin County, Ohio, announced consent solicitations for its $50.55 million of series 2013A health care facilities improvement revenue bonds issued for OPRS Communities and for its series 2010 health care facilities improvement revenue bonds issued for the Ohio Presbyterian Retirement Services Project, according to a notice.

The solicitations will expire at 5 p.m. ET on May 20.

The issuer is proposing to delete a section of the Nov. 1, 2013 lease between Franklin County and OPRS Communities, formerly known as Ohio Presbyterian Retirement Services. The lease section pertains to a debt service coverage ratio, and its deletion would result in the ratio being calculated in accordance with the master indenture, rather than in accordance with the lease.

Under the master indenture, debt service coverage ratio means the ratio of net income available for debt service for the period in question to the greater of the average annual debt service or the actual debt service requirements for the current fiscal year.

The issuer is also proposing to amend a second section of the lease to eliminate references to the section it is proposing to delete, according to the notice.

OPRS agreed to the affected lease sections in 2013, because substantially similar covenants were included in one or more of its revenue bond issues prior to 2013. However, OPRS is in the process of either refinancing those prior revenue bond issues or negotiating amendments to the bond documents. OPRS expects to eliminate the substantially similar covenants from all of its revenue bond financings by September.

In order for the issuer’s proposal to pass, consents must be received from beneficial owners of a majority of the principal amount of the notes.

Questions about the consent solicitation may be directed to OPRS financial adviser Jeff Fivecoat of Piper Jaffray (614-766-3674 or jeffrey.c.fivecoat@pjc.com) or to underwriter Tom Meyers of B.C. Zeigler and Co. (312-596-1537 or tmeyers@ziegler.com).

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