November 13, 2008 |
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Trinity Health Completes $1.3 Billion Bond Sale
Strong AA Ratings Help the National Health System Restructure Debt, Create New Cash
Novi, Michigan (November 13, 2008) – Trinity Health, the fourth-largest Catholic health system in the country, has sold $793 million of variable rate demand bonds at an average rate of .98 percent. The low rates reflect investors’ desire to own highly liquid, high quality securities, said Jim Bosscher, vice president, treasury, Trinity Health.
Yesterday’s sale comes two weeks after Trinity Health was able to sell $492 million in fixed-rate bonds in Michigan and Idaho on Oct. 29, bringing the total bond issue transactions to nearly $1.3 billion. The bonds were used to free up $175 million in new cash and restructure Trinity Health’s existing debt.
“Investor recognition by a large number of investors who purchased these securities affirms our strong market position,” said Edward Chadwick, chief financial officer, Trinity Health. “During this current credit crunch, the municipal bond markets are in a ‘flight to quality.’ As individuals and institutions become more willing to invest, they are looking to the highest quality institutions with the lowest credit risk.”
Trinity Health is AA-rated by Moody’s, Standard & Poor’s and Fitch ratings services.
“This is good news for Trinity Health and will help our member hospitals respond and adapt to the current economic climate,” Bosscher said. “The successful bond transactions will help ensure the sustainability of our health care ministry and, most important, our ability to continue meeting community needs and to providing excellent patient care.”
About Trinity Health
Trinity Health, headquartered in Novi, Michigan, is the nation’s fourth-largest Catholic health care system with 44 acute-care hospitals, 379 outpatient facilities, 26 long-term care facilities, and numerous home health offices and hospice programs based in seven states. Employing 44,500 full-time staff, reported $6.3 billion in unrestricted revenue and $376 million in community benefits in fiscal year 2008. For more information about Trinity Health, visit www.trinity-health.org.