Thursday, August 14, 2014
Valley Health System Announces Sale of $63 Million in Tax-Exempt Bonds
Valley Health System’s Board of Trustees earlier this month approved the sale of $63 million of tax-exempt, fixed rate revenue bonds. Proceeds from the sale will refund portions of 2009 bonds for interest cost savings of approximately $300,000 annually.
Approximately $44 million were issued in Virginia by the Economic Development Authority of the City of Winchester, and approximately $19 million were issued in West Virginia by the West Virginia Hospital Finance Authority. Both bond issues will be rated “A1” by Moody’s and “A+” by S&P.
Bonds were available for sale on August 14 through three underwriting firms: Wells Fargo Securities, Bank of America Merrill Lynch, and BB&T Capital Markets. The minimum order amount was $5,000.
“We have a fiduciary responsibility to the communities we serve to manage our capital structure as cost effectively as possible,” said Mark H. Merrill, Valley Health System President and CEO. “This includes seizing opportunities to reduce financing costs. We are pleased to offer reliable, highly-rated bonds for community investment.”