Moody's rates Avera Health, S.D., revenue bonds A1

Moody's Investors Service said it assigned A1 long-term and underlying ratings to Avera Health's series 2008 revenue bonds to be issued through the South Dakota Health & Educational Facilities Authority.

Moody's also affirmed the A1 underlying and long-term ratings on Avera's outstanding parity bonds. The outlook is stable.

The $139.92 million in series 2008A variable-rate demand bonds are to be sold June 12. The $61.38 million in series 2008C variable-rate demand bonds are to be sold June 27. The series 2008B fixed-rate bonds, totaling $51.435 million, are expected to be sold June 4.

The series 2008A variable rate demand bonds are expected to be supported by an irrevocable direct-pay letter of credit from US Bank, rated Aa1 for long-term deposits and P-1 for short-term deposits. The series 2008C variable-rate demand bonds are expected to be supported by an irrevocable direct-pay letter of credit from Allied Irish, rated Aa2 for long-term deposits and P-1 for short-term deposits.

The new bonds will refund all existing variable-rate debt and pay costs of issuance. In addition, $93 million of proceeds will fund new projects at the McKennan campus, including a freestanding cancer and surgery center, a biplane interventional special procedures lab and the renovation of two floors in the existing east patient tower.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.