IBJNews

IU Health readies bond sale

Back to TopCommentsE-mailPrintBookmark and Share

Indiana University Health plans to sell $228.2 million in bonds this week to finance its Saxony hospital in Fishers and to refinance existing debt.

The Indianapolis-based hospital system disclosed the bond sale in an April 13 document distributed to bond investors.

The actual date and terms of the sale have yet to be set.

IU Health plans to use $70 million of the proceeds to pay for the building and equipment at Saxony Medical Center, a 40-bed facility in Fishers. IU Health expects the hospital to open at the end of this year.

Part of the bond proceeds will go to pay down  financing IU Health has been using to fund Saxony construction so far, which began in 2008. In November 2009, IU Health—then called Clarian Health—executed a sale-leaseback deal with The Herrick Co., a real estate investment firm with offices in Florida and New Jersey.

The Saxony hospital will offer cardiology, orthopedic services and neurosurgery, as well as an emergency room and a 100,000-square-foot medical office building.

Nearly all the remainder of the money—or $157.5 million—will go to refinance or restructure bonds sold in 2008.

IU Health also will spend $740,000 to issue the bonds via the Indiana Finance Authority. Indianapolis-based Ice Miller LLP is IU Health’s bond counsel. And Indianapolis-based Baker & Daniels LLP is representing the firms underwriting the bonds: Bank of America Merrill Lynch, Citi and US Bancorp.

According to Fitch Ratings, IU Health also is planning a second bond sale in early May, of $166.1 million, which will refinance bonds sold in 2003 and 2005.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. How can any company that has the cash and other assets be allowed to simply foreclose and not pay the debt? Simon, pay the debt and sell the property yourself. Don't just stiff the bank with the loan and require them to find a buyer.

  2. If you only knew....

  3. The proposal is structured in such a way that a private company (who has competitors in the marketplace) has struck a deal to get "financing" through utility ratepayers via IPL. Competitors to BlueIndy are at disadvantage now. The story isn't "how green can we be" but how creative "financing" through captive ratepayers benefits a company whose proposal should sink or float in the competitive marketplace without customer funding. If it was a great idea there would be financing available. IBJ needs to be doing a story on the utility ratemaking piece of this (which is pretty complicated) but instead it suggests that folks are whining about paying for being green.

  4. The facts contained in your post make your position so much more credible than those based on sheer emotion. Thanks for enlightening us.

  5. Please consider a couple of economic realities: First, retail is more consolidated now than it was when malls like this were built. There used to be many department stores. Now, in essence, there is one--Macy's. Right off, you've eliminated the need for multiple anchor stores in malls. And in-line retailers have consolidated or folded or have stopped building new stores because so much of their business is now online. The Limited, for example, Next, malls are closing all over the country, even some of the former gems are now derelict.Times change. And finally, as the income level of any particular area declines, so do the retail offerings. Sad, but true.

ADVERTISEMENT