TriHealth Plans to Refinance Existing Bonds and Issue Additional Bonds

February 28, 2017

TriHealth said that it is setting in motion a process to refinance existing debt and issue new, tax-exempt bonds. Together, the value of the new bonds will be more than $430 million.

The move will save TriHealth millions of dollars through securing lower interest rates and buying out less-efficient capitalized leases.  In addition, some of the proceeds will be put toward the reimbursement of previous capital expenditures and provide funding for expansion of the TriHealth ambulatory network, the largest in southwest Ohio.

Specifically, the plan calls for:

  • Refinancing approximately $150 million in existing debt currently held by Catholic Health Initiatives, one of TriHealth’s sponsors
  • Buying out capitalized leases of nearly $200 million
  • Investing approximately $80 million in new funds to reimburse previous capital expenditures and provide funding for the expansion of the TriHealth ambulatory network

It was reported earlier this week that Fitch Rating Agency has assigned a new credit rating of A+ to TriHealth for this issue.  “Establishing our own independent credit--and borrowing on that credit--will allow TriHealth to take advantage of historically low interest rates, while also increasing our flexibility to fund the capital investments that are necessary to provide the best possible services and facilities for our patients," said Mark C. Clement, TriHealth President and CEO. “This step will save TriHealth more than $95 million over then next 30 years and ensure that we continue to drive greater efficiencies into everything we do while improving access to quality care throughout the region.”                    

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