← Back to Latest News

Pennsylvania Issues More Than $90 Mln in Bonds

By Munichain News Desk

A Pennsylvania state agency issued $90 million in bonds to improve the state’s largest hospital system and refund a previous issuance.

The issuer, Pennsylvania’s Economic Development Financing Authority, will apply funds from the most recent sale to refund and defease a 2013 issuance that was backed by the University of Pittsburgh Medical Center (UPMC). The 2023 bonds, which will also be supported by revenue from UPMC, mature between 2024 and 2043, with yields ranging from 2.65% to 4.25%. They are rated A by S&P Global Ratings and Fitch Ratings and A2 by Moody’s Investors Service.

“UPMC’s leading market share in Allegheny County and the western Pennsylvania market remains a significant credit strength,” according to Fitch.

The issuance comes amid an effort to finance a series of projects for Pennsylvania’s hospitals. UPMC expects to sell an aggregate total of $800 million in bonds backed by hospital revenue and issued by the state’s Economic Development Financing Authority. Despite a projection of low-profitability in the near term, Fitch said that UPMC’s revenues are well hedged.

UPMC was established in 1982 and is the parent corporation of the largest healthcare system in Pennsylvania, including more than 40 hospitals. The hospital system generated $25.5 billion in revenue last year. It primarily operates in Allegheny County, where it has a greater than 60% inpatient medical-surgical market share. UPMC plans to issue more bonds in 2025 to replace debt that is scheduled to mature that year.

Barclays Capital Inc. served as lead underwriter for the bond issuance.

Subscribe to the Munichain Newsletter

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