Featured Municipal Bond in the Market, Week of 03/13/2017: California Health Facilities Financing Authority – El Camino Hospital (Revenue Bonds) – $287 Million
This week’s featured bond comes from the State of California. The California Health Facilities Financing Authority is issuing revenue bonds on behalf of El Camino Hospital, of which the El Camino Healthcare District is the sole member. These El Camino Hospital revenue bonds are being issued in the amount of $287 million the week of March 13, 2017. The bonds consist of a single, tax-exempt series. Proceeds from the bonds will be primarily used to reimburse and finance construction, expansion, remodeling, renovation, furnishing, equipping, and acquisition of health facilities, including El Camino Hospital-Mountain View, and a new building for behavioral health services. Further details on the purposes, security, projects, and other matters pertaining to these revenue bonds can the found in the preliminary official statement, provided by MuniOS.
The bonds are a limited liability of the California Health Facilities Financing Authority, and not considered a liability of the State of California. Neither the taxing power nor faith and credit of the State or any political subdivision is pledged. Security for the bonds is a pledge of the hospital to pay premium and principle, backed by gross revenues. In addition to these El Camino Hospital revenue bonds, there is also a separate general obligation issuance of $95 million directly from the El Camino Hospital District.
The main campus of El Camino Hospital is located in Mountain View, CA, home of the headquarters of Google, Inc., a center of Silicon Valley, and part of the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Area. As of January 2017, the the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Area had an unemployment rate of 3.4%, which is 0.7% lower than one year ago, and 1.3% higher than the national rate of 4.7% as of January 2017. The chart below shows the ten-year unemployment rate trend lines for the U.S., the State of California, and the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Area. MuniNet provides this data and more, easily accessible, for all 50 states and each Metropolitan Statistical Area in the country, in our Employment Database.
Provided at left is a quick snapshot of financial characteristics of the El Camino Healthcare District, as of 06/30/2016, along with the medians for other stand alone hospitals/hospital districts for 2015-2016, courtesy of Merritt Research Services, LLC. It should be noted that these financial metrics reflect the Healthcare District in its entirety, not solely the El Camino Hospital. 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). 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.