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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndiana University Health plans to sell $228.2 million in bonds this week to finance its Saxony hospital in Fishers and to refinance existing debt.
The Indianapolis-based hospital system disclosed the bond sale in an April 13 document distributed to bond investors.
The actual date and terms of the sale have yet to be set.
IU Health plans to use $70 million of the proceeds to pay for the building and equipment at Saxony Medical Center, a 40-bed facility in Fishers. IU Health expects the hospital to open at the end of this year.
Part of the bond proceeds will go to pay down financing IU Health has been using to fund Saxony construction so far, which began in 2008. In November 2009, IU Health—then called Clarian Health—executed a sale-leaseback deal with The Herrick Co., a real estate investment firm with offices in Florida and New Jersey.
The Saxony hospital will offer cardiology, orthopedic services and neurosurgery, as well as an emergency room and a 100,000-square-foot medical office building.
Nearly all the remainder of the money—or $157.5 million—will go to refinance or restructure bonds sold in 2008.
IU Health also will spend $740,000 to issue the bonds via the Indiana Finance Authority. Indianapolis-based Ice Miller LLP is IU Health’s bond counsel. And Indianapolis-based Baker & Daniels LLP is representing the firms underwriting the bonds: Bank of America Merrill Lynch, Citi and US Bancorp.
According to Fitch Ratings, IU Health also is planning a second bond sale in early May, of $166.1 million, which will refinance bonds sold in 2003 and 2005.
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