The Florida Development Finance Corporation sold $283.3 million in bonds to finance improvements at a hospital in Tampa.
The corporation issued the bonds in two series. The Series 2024A bonds, consisting of $208.3 million, mature between 2025 and 2055, yielding between 3.03% and 4.71%. The Series 2024B bonds, consisting of $75 million, mature in 2056 (with a mandatory tender in 2031) and yield 3.38%. The securities received a rating of A from Fitch Ratings and A- from S&P Global Ratings.
The corporation will loan the bond proceeds to Tampa General Hospital (TGH), an academic medical center affiliated with the University of South Florida.
The rating reflects “demonstrated operating cost flexibility through the pandemic and while undergoing a large construction project and implementing an ambitious ambulatory growth strategy,” Fitch analysts wrote.
The bond proceeds will finance TGH’s largest expansion in years. Last December, the hospital finalized the acquisition of Bravera Health, a hospital system primarily operating north of Tampa that TGH bought last December. The bond proceeds will partially fund the acquisition of former Bravera facilities.
The merger will significantly increase TGH’s debt load, and require $140 million in additional spending under the hospital’s capital improvement plan. It will also allow TGH to reach more patients.
“By bringing the Bravera Health network into our system and coming together as one organization, we will be stronger in our united mission to transform health care for all Floridians,” TGH President and CEO John Couris said in a press release.
The bonds are limited obligations of the Florida Development Finance Corporation, payable by TGH revenue.
J.P. Morgan Securities LLC served as lead underwriter on the issuance, purchasing the bonds for more than $301 million. The price reflected a premium of $19 million. Hamlin Capital Advisors, LLC acted as financial advisor.