CHICAGO - The Illinois Finance Authority board advanced nearly $400 million of new borrowing plans at its meeting Thursday in deals that highlight the popularity of direct placements.
In the largest single financing, the board advanced Palos Community Hospital's sale of up to $234 million to refund existing 2007 and 2015 bonds. PCH is an acute care hospital in the Chicago suburb of Palos Heights with outpatient satellite facilities.
The bonds will be directly purchased by a consortium of banks including BMO Harris Bank, US Bank, and Capital One. Fitch Ratings assigns an AA-minus rating to the hospital's debt.
The board also advanced Riverside Health System's sale of $37.5 million of bonds to refund 2004 and 2006 debt. Riverside Health System is the parent corporation of a regional health system operating in the far southern portion of the Chicago metropolitan area headquartered in Kankakee.
The system carries ratings of A2 from Moody's Investors Service and A-plus from Standard & Poor's. The bonds are being directly purchased by DNT Asset Trust, a subsidiary of JPMorgan Chase.
The board also signed off on Sarah Bush Lincoln Health System's $30 million sale to complete work on its $48 million master facility plan that includes the construction and renovation of medical and surgical units, a new cardiology wing, and a new clinic in Toledo, Illinois. SBLHS serves Coles County and its surrounding six counties in east central Illinois.
The bonds will be privately placed with a bank to be named at a later date. The system is rated A-plus by Standard & Poor's although the bonds won't carry a public rating.
The board also approved Bethesda Home and Retirement Center's sale of up to $8 million of new money and refunding bonds. The senior living facility, located in Chicago, wants to construct a new rehabilitation center, undertake some remodeling of its existing building and other renovations. It would also refund 2012 debt.
The organization is not rated and MB Financial Bank will directly purchase the bonds.
The board signed off on an up to $23.5 million new money and refunding for the Nazareth Academy to finance campus projects including a new academic building, the addition of athletic field lighting, and utility improvements.
As part of its refunding of 2006 bonds, the proceeds will also cover the termination of interest rate swaps. Nazareth Academy is a private, co-educational college preparatory school located in LaGrange Park. The bonds are being directly placed with MB Financial Bank.
The board signed off on an up to $23.5 million new money and refunding for the Nazareth Academy to finance campus projects including a new academic building, the addition of athletic field lighting, and utility improvements.
The board also advanced a $65 million financing for Plymouth Place, Inc. to finance the costs of acquiring, constructing, renovating, remodeling and equipping its health care facilities and to refund 2005 debt.
Plymouth Place operates a continuing care retirement community in LaGrange Park. The bonds will be publicly offered and are expected to carry a speculative grade rating of BB-plus from Fitch Ratings. A feasibility study is being prepared by management and CliftonLarsonAllen. Ziegler is serving as underwriter.
