Published on 4/27/2016 in the Prospect News Municipals Daily.
New Issue: Ascension Health brings $1.25 billion of revenue bonds in four tranches
By Sheri Kasprzak
New York, April 27 – The Ascension Health Alliance sold $1,246,250,000 of series 2016 revenue bonds, according to a pricing sheet.
The deal included $1,019,750,000 of series 2016A bonds through the Wisconsin Health and Educational Facilities Authority, $73,075,000 of series 2016B bonds through the Alabama Special Care Facilities Financing Authority of Birmingham, $87,795,000 of series 2016C bonds through the Alabama Special Care Facilities Financing Authority of Mobile and $65.63 million of series 2016E-1 bonds through the Michigan Finance Authority.
The 2016A bonds are due 2018 to 2036 with term bonds due in 2039 and 2046. The serial coupons range from 3% to 5% with yields from 0.75% to 3.25%. The 2039 bonds have a 4% coupon priced at 106.453 to yield 3.24%, a 4.5% coupon priced at 112.519 to yield 3.04% and a 5% coupon priced at 118.706 to yield 2.84%. The 2046 bonds have a 4% coupon priced at 105.489 to yield 3.35%.
The 2016B bonds are due Nov. 15, 2046 and have a 5% coupon priced at 117.373 to yield 2.98%.
The 2016C bonds are due Nov. 15, 2046 and have a 5% coupon priced at 117.373 to yield 2.98%.
The 2016E-1 bonds are due Nov. 15, 2046 and have a 1.1% coupon priced at par.
The bonds (Aa2/AA+/AA+) were sold through senior manager Morgan Stanley & Co. LLC.
Proceeds will be used to finance capital improvements to Ascension facilities.
Issuer: | Ascension Health Alliance
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Issue: | Series 2016 revenue bonds
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Amount: | $1,246,250,000
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Type: | Negotiated
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Underwriters: | Morgan Stanley & Co. LLC (lead), BofA Merrill Lynch and J.P. Morgan Securities LLC (co-managers)
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Ratings: | Moody’s: Aa2
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| Standard & Poor’s: AA+
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| Fitch: AA+
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Pricing date: | April 27
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Settlement date: | May 11
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$1,019,750,000 series 2016A Wisconsin Health and Educational Facilities Authority bonds
|
Amount | Maturity | Type | Coupon | Price | Yield
|
$4.09 million | 2018 | Serial | 3% | 105.586 | 0.75%
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$4,215,000 | 2019 | Serial | 4% | 110.727 | 0.89%
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$4.91 million | 2020 | Serial | 5% | 117.455 | 1.03%
|
$5,985,000 | 2021 | Serial | 5% | 120.206 | 1.20%
|
$4,975,000 | 2022 | Serial | 5% | 122.468 | 1.38%
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$5,095,000 | 2023 | Serial | 5% | 124.372 | 1.55%
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$5,215,000 | 2024 | Serial | 5% | 125.956 | 1.71%
|
$7,485,000 | 2025 | Serial | 5% | 127.056 | 1.88%
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$20.28 million | 2026 | Serial | 5% | 126.887 | 2.02%
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$14.55 million | 2027 | Serial | 5% | 125.444 | 2.16%
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$18.35 million | 2028 | Serial | 5% | 124.527 | 2.25%
|
$18.38 million | 2029 | Serial | 5% | 123.819 | 2.32%
|
$17,295,000 | 2030 | Serial | 5% | 123.416 | 2.36%
|
$21,715,000 | 2031 | Serial | 5% | 122.616 | 2.44%
|
$21,085,000 | 2032 | Serial | 4% | 109.954 | 2.85%
|
$3 million | 2033 | Serial | 3% | 99.325 | 3.05%
|
$53,545,000 | 2033 | Serial | 4% | 109.044 | 2.95%
|
$104.8 million | 2034 | Serial | 4% | 108.322 | 3.03%
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$1,125,000 | 2034 | Serial | 5% | 120.74 | 2.63%
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$55 million | 2035 | Serial | 4% | 107.784 | 3.09%
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$55.46 million | 2035 | Serial | 5% | 120.155 | 2.69%
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$15 million | 2036 | Serial | 3.125% | 98.138 | 3.25%
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$52,315,000 | 2036 | Serial | 4% | 107.249 | 3.15%
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$50 million | 2036 | Serial | 5% | 119.573 | 2.75%
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$110 million | 2039 | Term | 4% | 106.453 | 3.24%
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$39,695,000 | 2039 | Term | 4.5% | 112.519 | 3.04%
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$110 million | 2039 | Term | 5% | 118.706 | 2.84%
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$196,185,000 | 2046 | Term | 4% | 105.489 | 3.35%
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$73,075,000 series 2016B bonds Alabama Special Care Facilities Financing Authority of Birmingham
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Maturity | Type | Coupon | Price | Yield
|
Nov. 15, 2046 | Term | 5% | 117.373 | 2.98%
|
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$87,795,000 series 2016C Alabama Special Care Facilities Financing Authority of Mobile
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Maturity | Type | Coupon | Price | Yield
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Nov. 15, 2046 | Term | 5% | 117.373 | 2.98%
|
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$65.63 million series 2016E-1 Michigan Finance Authority bonds
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Maturity | Type | Coupon | Price | Yield
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Nov. 15, 2046 | Term | 1.1% | 100 | 1.10%
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