Houston, Texas Downtown. One of the cities served by Texas Children's photo

Houston, Texas Downtown. One of the cities served by Texas Children’s

Featured Bond – Week of June 17, 2019: Harris County Cultural Education Facilities Finance Corporation $231 Million in Hospital Revenue Bonds (Texas Children’s Hospital)


The Harris County Cultural Education Facilities Finance Corporation is issuing $231 Million in Hospital Revenue bonds for Texas Children’s Hospital. The bonds are broken into Series 2019A bonds of $151.7 million and Series 2019B bonds of $79.5 million. The bonds are being sold through negotiated sale with pricing during the week of June 17th.

Ratings are Aa2, AA, and AA from Moody’s, S&P, and Fitch, respectively.

About Texas Children’s Hospital & The Bonds

Texas Children’s, a Texas nonprofit corporation, is the largest pediatric integrated delivery system in the country. It’s been ranked #4 in the 2018-2019 U.S. News Best Children’s Hospitals rankings. The hospital has an academic affiliation with Baylor College of Medicine. The hospital operates in both Houston and Austin. Texas Children’s encompasses 40% of the Texas population. It’s Houston network consists of over 80 locations and the hospital has been growing in the Austin region. In Houston, Texas Children’s has 49% of the overall pediatric market share.

Texas Children’s manages its investments at the direction of the Foundation Board of Directors. The Series 2019A bonds ($151.7 Million) are being issued as tax-exempt fixed rate bonds to refund Series 2009 and Series 2010 Bonds. The expected final maturity of these bonds is 2039. The Series 2019B bonds ($79.5 million) are being issued as put bonds to refund the Series 2008-3 Variable Direct Placement. The expected final maturity of these bonds is 2041. The Series 2019 financing is expected to provide Texas Children’s material debt service savings and reduce its maximum annual debt service.

Security for the Bonds

The bonds are general unsecured obligation of the Obligated Group comprised of Texas Children’s Hospital and the Foundation. Neither the State of Texas nor any political subdivision or agency of the State, including the sponsoring entity Harris County, Texas, is obligated to pay the bonds or interest on the bonds. Neither the faith and credit nor the taxing power of the State of Texas, Harris County, Texas, or any other subdivision or agency of the State is pledged to the payment. The issuer has no taxing power.


These details and more on purposes, security, risks and other matters pertaining to these Hospital Revenue bonds can the found in the official statement, provided by MuniOS. After registering, if needed, visitors can link directly to the official statement as well as an investor’s roadshow by searching for the Harris County Cultural Education Facilities Finance Corporation.

Statistical Snapshot: Texas Children’s Hospital Selected Financial and Economic Indicators

Texas Children's Hospital financial snapshot chart

Texas Children’s Hospital financial snapshot as of September 30, 2018 Fiscal Year Audit. Source: Merritt Research Services, LLC

Provided above is a quick snapshot of financial characteristics of the Texas Children’s Hospital along with the medians for all other stand alone hospitals, courtesy of Merritt Research Services, LLC. 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 calendarcity, state, and county pages.

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.  

Potential investors should rely only on the official documents and figures provided in the official statement (prospectus).  Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies ,  they are not intended to replace official information presented in connection with the bond sale. Medians may differ from official sales documents due to methodology or survey base variances.