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Alaska Authority Sells $236 Mln in Cancer Research Bonds

By Munichain News Desk

Alaska’s Public Finance Authority issued $236.1 million in bonds to finance a nonprofit’s acquisition of radiation oncology centers.

The authority sold the bonds in six series, including tax-exempt and taxable securities. The tax-exempt bonds, consisting of $129.5 million, mature between 2028 and 2053, yielding between 9% and 10%. The taxable bonds, consisting of $106.6 million, also mature between 2028 and 2053, yielding between 7.5% and 12%.

All of the securities are term bonds. The authority has not applied to a rating agency for a bond rating.

The authority will loan the bond proceeds to the nonprofit Aurora Integrated Oncology Foundation and four other oncology centers in the state. The proceeds will finance “the acquisition of various existing radiation oncology centers located in the State of Alaska including the real estate and equipment related to such centers and combining a professional physician practice providing physicians to provide services in such centers,” according to the official statement accompanying the sale of the bonds. 

Efforts to improve Alaska’s oncology centers could face structural headwinds. There are just 14 oncologists in the entire state of Alaska, according to the Kaiser Family Foundation, a nonprofit focusing on health policy.

The bonds are special limited obligations of the authority, payable by a pledge of revenue from the Aurora Integrated Oncology Foundation and the other borrowers.

Loop Capital Markets LLC served as lead underwriter on the issuance.

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