A New York state authority issued $293 million in bonds on behalf of one of the state’s largest hospitals.
The bonds, sold on behalf of the New York and Presbyterian Hospital (NYPH), mature between 2029 and 2038, yielding between 3.01% and 3.67%. They received a rating of Aa2 from Moody’s Investors Service and AA from Fitch Ratings.
“The ‘AA’ rating reflects NYPH’s market position as one of New York’s major academic healthcare systems, with a strong reputation that extends beyond the greater New York region,” according to Fitch.
The issuance comes as the hospital enacts its $4.9 billion capital improvement plan, which runs through 2028.
The hospital, also known as NewYork-Presbyterian, manages seven campuses in the New York metropolitan area. The largest, New York-Presbyterian Weill Cornell Medical Center, generates $7 billion in annual revenue, more than any other hospital in the state, according to healthcare analytics firm Definitive Healthcare. NYPH generates almost $9 billion in annual revenue, according to its financial statements.
The bonds were sold by the Dormitory Authority of the State of New York, which will loan the proceeds to the hospital. The bonds are special, limited obligations of the authority, payable by revenue from the loan.
Goldman Sachs & Co LLC and Morgan Stanley & Co LLC served as underwriters on the issuance, purchasing the bonds for $329 million. The price reflected a net issue premium of more than $36 million.