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. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT