The California Health Facilities Authority this week completed the final phase of a two-part plan to issue $265 million of bonds on behalf of Catholic Heathcare West, a statewide hospital system.
The authority on Tuesday sold $105 million of variable-rate tax-exempt bonds that will be used for the hospital system. The deal came after a $160 million sale of fixed-rate bonds on May 9.
"The primary use of bond proceeds will be used for capital expenditures incurred at a number of Catholic Healthcare West hospitals throughout California," said state Treasurer Matt Fong, who is also chairman of the authority. "In addition, part of the proceeds will be used to refinance a debt issue belonging to St. Joseph's Hospital of Stockton, a recent member of the Catholic Healthcare West family. Provisions in the law require such refinancing in the event of a merger."
The MBIA Insurance Corp.-insured issue received a triple-A rating from both Moody's Investors Service and Standard & Poor's Corp. The bonds were sold by PaineWebber Inc.
In other action, the California Housing Finance Agency issued $140 million of home mortgage revenue bonds on Tuesday. Proceeds will be used to fund loans for first-time homebuyers throughout the state.
Merrill Lynch & Co. led an underwriting team that included Goldman, Sachs & Co., Lehman Brothers, Bear, Stearns & Co., Smith Barney Inc., Samuel A. Ramirez & Co., Grigsby, Brandford & Co., and Great Pacific Fixed Income Securities Inc.
Bond counsel was provided by Orrick, Herrington & Sutcliffe, the law office of Pamela S. Jue, and Attorney General Daniel Lundgren. There was no financial adviser.
"We were very happy with how the deal sold," said Ken Carlson, the agency's finance director. "We try and issue every 60 days or less with deals in the hundred-million-dollar range. All the proceeds go to the first-time homebuyer program."
In next week's action, Sacramento County will issue $265 million of tax and revenue anticipation notes on Thursday. On Tuesday, Oakland will issue $55 million of Trans.
