← Back to Latest News

Ohio Issues $92 Million in Hospital Bonds

By Munichain News Desk

Ohio sold $92 million in bonds to finance upgrades at a children’s hospital in Akron.

The state issued the bonds in two series. The Series 2024A bonds, consisting of $25 million, mature in 2048 and yield 4.09%. The Series 2024B bonds, consisting of $67 million, mature in 2054 and yield 3.46%. The securities received a rating of AA- from Fitch Ratings and Aa3 from Moody’s Investors Service.

The bond proceeds will support upgrades at the Children’s Hospital Medical Center of Akron. Also known as Akron Childrens’ Hospital, the medical center is the largest pediatric care provider in northeast Ohio and one of the largest in the United States, according to the hospital’s website.

The rating is based on the hospital’s “consistently strong operating performance and very strong liquidity,” Fitch analysts wrote.

The hospital will use the issuance proceeds to finance improvements to several hospital facilities, including ambulatory centers and pediatric intensive care centers, at its primary 281-bed campus in downtown Akron and its 42-bed campus in Boardman, a suburb of Youngstown.

The bonds are special obligations of the state, payable by hospital revenue. The hospital recorded $1.4 billion in operating revenue last year.

Goldman Sachs & Co LLC served as lead underwriter on the issuance, purchasing the bonds for $101 million. The price reflected a premium of more than $9 million. Kaufman, Hall & Associates, LLC acted as financial advisor.

Subscribe to the Munichain Newsletter

The latest municipal bond market news and insights delivered to your inbox.