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
Issue:	Series 2016 revenue bonds
Amount:	$1,246,250,000
Type:	Negotiated
Underwriters:	Morgan Stanley & Co. LLC (lead), BofA Merrill Lynch and J.P. Morgan Securities LLC (co-managers)
Ratings:	Moody’s: Aa2
	Standard & Poor’s: AA+
	Fitch: AA+
Pricing date:	April 27
Settlement date:	May 11
$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%
$4,215,000	2019	Serial	4%	110.727	0.89%
$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%
$5,095,000	2023	Serial	5%	124.372	1.55%
$5,215,000	2024	Serial	5%	125.956	1.71%
$7,485,000	2025	Serial	5%	127.056	1.88%
$20.28 million	2026	Serial	5%	126.887	2.02%
$14.55 million	2027	Serial	5%	125.444	2.16%
$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%
$1,125,000	2034	Serial	5%	120.74	2.63%
$55 million	2035	Serial	4%	107.784	3.09%
$55.46 million	2035	Serial	5%	120.155	2.69%
$15 million	2036	Serial	3.125%	98.138	3.25%
$52,315,000	2036	Serial	4%	107.249	3.15%
$50 million	2036	Serial	5%	119.573	2.75%
$110 million	2039	Term	4%	106.453	3.24%
$39,695,000	2039	Term	4.5%	112.519	3.04%
$110 million	2039	Term	5%	118.706	2.84%
$196,185,000	2046	Term	4%	105.489	3.35%
$73,075,000 series 2016B bonds Alabama Special Care Facilities Financing Authority of Birmingham
Maturity	Type	Coupon	Price	Yield
Nov. 15, 2046	Term	5%	117.373	2.98%
$87,795,000 series 2016C Alabama Special Care Facilities Financing Authority of Mobile
Maturity	Type	Coupon	Price	Yield
Nov. 15, 2046	Term	5%	117.373	2.98%
$65.63 million series 2016E-1 Michigan Finance Authority bonds
Maturity	Type	Coupon	Price	Yield
Nov. 15, 2046	Term	1.1%	100	1.10%

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