The Colorado Health Facilities Authority issued $210.9 million in bonds on behalf of one of the largest nonprofit hospital systems in the United States.
The authority sold the bonds in two series. The Series 2024A bonds, consisting of $139.5 million, mature in 2059 and yield between 3.56% and 3.63%. The Series 2024B bonds, consisting of $71.4 million, mature between 2029 and 2039, yielding between 3.41% and 3.65%. All of the bonds pay interest at 5%. The securities received a rating of AA from Fitch Ratings, Aa2 from Moody’s Investors Service, and AA from S&P Global Ratings.
The authority will loan the bond proceeds to AdventHealth, a national hospital system that primarily operates in Florida. AdventHealth is currently expanding its operations in Colorado.
Fitch analysts wrote that their rating is based on AdventHealth’s “competitive market position.”
AdventHealth will use the proceeds from the issuance to make improvements to its hospitals in Colorado.
AdventHealth, a nonprofit affiliated with the Seventh-Day Adventist Church, operates fifty hospitals in nine states. It is the eighth-largest nonprofit health-care system in the country, according to analytics firm Definitive Healthcare.
The bonds are limited obligations of the Colorado Health Facilities Authority, secured by AdventHealth’s gross revenue. The nonprofit recorded $16.8 billion in operating revenue last fiscal year.
BofA Securities, Inc served as lead underwriter on the issuance, purchasing the bonds for $229.1 million. The price reflected a premium of $18.2 million. PFM Financial Advisors LLC acted as municipal advisor.