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Maine Sells $122 Million in Health Care Bonds

By Munichain News Desk
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The Maine Health and Higher Educational Facilities Authority issued $122.4 million in bonds to fund hospitals and a prep school in the state.

The bonds mature between 2024 and 2053, yielding between 3.29% and 5%. The securities received an insured rating of A1 from Moody’s Investors Service and AA from S&P Global Ratings, and underlying ratings of A+ from Fitch Ratings and A1 from Moody’s.

The authority will loan the proceeds to a pool of local health care providers and a college prep school.

“The assignment of the A1 reflects the moral obligation pledge of the State of Maine to replenish reserve fund draws and our view that this rating is higher than the pool program rating,” Moody’s analysts wrote.

The proceeds will finance improvements at four Maine health care providers: Houlton Regional Hospital, MaineHealth, Mount Desert Island Hospital, and Hometown Health Center. They will also fund projects at North Yarmouth Academy, an independent prep school.

MaineHealth, a nonprofit health system which runs 12 community hospitals in the state, will receive the largest disbursement, totaling about $80 million. Hometown Health Center will receive $30 million, with the remaining $12 million distributed amongst the other health care providers and North Yarmouth Academy.

The bonds are special obligations of the authority, secured by the loans to the health care providers and North Yarmouth Academy.

Morgan Stanley & Co LLC and Raymond James & Associates, Inc served as underwriters on the issuance, purchasing the bonds for $127 million. The price reflected a premium of almost $5 million. Hilltop Securities Inc served as municipal advisor.


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