The Idaho Health Facilities Authority sold $46.2 million in bonds to finance the construction of a medical center in the city of Twin Falls.
The securities are term bonds which mature between 2029 and 2057, yielding between 5.5% and 7.25%. The authority did not request a rating from credit rating agencies.
“Typically, unrated municipal securities are not as marketable, compared to rated municipal securities, in the secondary market,” the official statement accompanying the sale of the bonds reads. “Consequently, investors may not be able to resell their Series 2023 bonds as readily or at all if they need or wish to do so for emergency or other purposes.”
The issuance comes amid a federal push to finance more rural health care services. In July, the Joe Biden administration announced that it would provide $129 in rural health care grants provided by the U.S. Department of Agriculture (USDA).
The proceeds will finance a new, 20,000 square foot medical facility adjacent to an existing clinic in Twin Falls. The new clinic will include orthopedists, podiatrists, urologists, and other specialists. The project is expected to cost more than $20 million, with a projected completion date in September of next year.
Initial construction for the project was financed by a federally backed loan from the USDA. Some of the bond proceeds will refinance that loan.
Twin Falls is a city of 50,000 in southern Idaho. The bonds are special obligations of the Idaho Health Facilities Authority.
Colliers Securities LLC served as underwriter on the issuance, purchasing the bonds for $45 million. The price reflected a discount of more than $1 million.