Illinois Finance Authority — $340.9 Million for OSF Healthcare

Featured Municipal Bond Issue, Week of October 1, 2018:   Illinois Finance Authority for OSF Healthcare— $340.9 Million

The Illinois Finance Authority is issuing $340,935,000 million Revenue Refunding Bonds, Series 2018A in  for the purposes of refunding outstanding obligations of OSF and pay the costs of issuance.    The bonds are being sold by negotiated underwriting through J.P. Morgan and Morgan Stanley.  The sale is expected to occur during the week of October 1 subject, in part, to market conditions.  To be separately issued through a different indenture offering but concurrently with the sale of the Series 2018A bonds, the Authority plans to issue a Series 2018B $65.7 million variable rate demand revenue refunding issue and a Series 2018C issue, both for the benefit of OSF.

OSF Healthcare System, is an Illinois not-for-profit Corporation providing integrated health care delivery through its subsidiaries and affiliates. The system operates 13 acute care hospitals, two colleges of nursing, a medical training simulation center and other healthcare facilities in Illinois and Michigan.  The system’s largest hospital, OSF Saint Francis Medical Center in Peoria, IL is a 629-licensed bed tertiary care teaching center.  The sole member of the Corporation is The Sisters of the Third Order of St. Francis, a religious congreagation of the Roman Catholic Church.  The Obligated group that is jointly and severally liable for the debt service on all obligations securing the bonds includes the Corporation, the Ottawa Regional Hospital & Healthcare Center, also called the St. Elizabeth Medical Center, Ottawa Regional Hospital Foundation, the Mendota Community Hospital, and OSF Multi-Specialty Group. (See the offering document in MuniOS.com for this bond issue and for more details and information about the Obligated group ).

The Series 2018A bonds are secured solely from payments made by the Corporation,  from payments made by the Obligated Group and other sources described in the offering document as described in the master indenture. The Series 2018A,  the 2018B, the 2018C and the Series 2018 Bank Obligations and other Outstanding Obligations will be equally and ratably secured by a security interest in the Unrestricted Receivables of the members of the Obligated Group, subject to certain exceptions.  Potential investors should review the  preliminary official statement offering document in its entirety for complete details and special provisions related to the Security or the 2018A Bonds and the Proposed Amendements to the Master Indenture.

Interest on the Series 2018A bonds are in  the opinion of Bond Counsel tax-exempt for federal income tax purposes.

Details on the purposes, tax-status, security, risks  as well as other matters pertaining to these OSF bonds can be found in the preliminary official statement after registering on the munios website and searching for Illinois Finance Authority.