Providence St. Joseph to Issue $306 Million in Revenue Bonds

This week’s featured bond comes from the State of California. The California Health Facilities Financing Authority is scheduled to issue $306 million in revenue bonds the week of September 06, 2016, on behalf of the newly consolidated Providence St. Joseph Health System. These bonds are scheduled to be issued as three series of $102 million each. Series 2016B-1, 2016B-2, and 2016B-3, are all part of a larger group of issues scheduled by California HFFA for Providence St. Joseph, totaling $1.9 billion, to refinance multiple bond series issued between 2000 and 2013. Payment of the Series 2016B bonds comes solely from certain funds and accounts held under the Bond Indenture, and from loan repayments pursuant to the loan agreement. Obligated Group Members may include participatory hospitals from both St. Joseph and Providence, which merged together on July 1, 2016, or from Providence alone. Information and clarification on security for the bonds and other matters can the found in the official statement, provided by MuniOS.

Provided at left is a quick snapshot of financial characteristics of both Providence Health and St. Joseph Health, along with the medians for other health care providers, courtesy of Merritt Research Services, LLC. The two tables reflect a sample of statistical metrics related to the financial health of St. Joseph Health and Providence Health Systems as of their most recent audits, prior to their July 1 merger. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness; metrics used apply to standard statistical formulas used by Merritt Research, which may differ from official representations of the borrowers). In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendar, city, state, and county pages, and our employment database. These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.