Tuesday, February 16, 2010

Bonds for new hospital slated to be issued

The Owensboro Medical Health System Board of Directors' Finance Committee announced Monday that the Kentucky Economic Development Finance Authority will issue two bonds Wednesday to finance its new hospital and retire existing debt.

The bonds will be available for sale exclusively to the public through retail brokers on the first day of sale. They will be made available exclusively to institutional buyers on Thursday.

The bond closing is scheduled for March 4.

"We expect the bonds will be sold by March 4, when the bond issues are scheduled to close," said Gordon Wilkerson, OMHS spokesman. "Construction for the new hospital will take place at the end of March or first of April."

The groundbreaking date for the new hospital on Daniels Lane will be set in the coming week.

A total of $544.9 million in bonds will be available. A bond of $474.8 million will be for financing the new hospital while a bond of $70.1 million will be to retire existing debt.

The bonds are rated BBB+ by Fitch and Baa by Moody's.

Kentucky residents may be eligible for double tax-free interest at or below 6.5 percent. The interest rate on the bonds will be determined at the close of business today. Investors are asked to consult with their tax advisers to determine any applicable federal, state or local tax liabilities.

The bonds will mature on dates ranging from 2013 to 2045.

Rich Suwanski, 691-7315, rsuwanski@messenger-inquirer.com