A South Carolina state authority sold $126.7 million in bonds to finance health care system improvements in the state’s northwest.
The bonds, issued by the South Carolina Jobs-Economic Development Authority on behalf of AnMed Health, mature between 2040 and 2053, yielding between 4.17% and 4.72%. They received a rating of AA- from Fitch Ratings and A+ from S&P Global Ratings.
“The ‘AA-‘ rating reflects AnMed’s strong and stable operating performance and leading market position in a sound service area,” according to Fitch.
The issuance comes amid rising health care challenges for Anderson County, where the hospital system AnMed operates. Rates of childhood obesity are rapidly rising, and 65% of adults are either overweight or obese, according to the United Way of Anderson County, a community nonprofit. Diabetes and mortality prevalences rose from 2013-18, according to a study conducted by AnMed.
The bond proceeds will finance improvements at two AnMed campuses in the city of Anderson. They will also support the construction of ambulatory care campuses in nearby Clemson and Piedmont.
AnMed maintains 648 beds across four inpatient facilities in Anderson County, which has a population of 200,000 people and lies on South Carolina’s northwest border with Georgia. The bonds are limited obligations of the authority, payable by AnMed revenue. In fiscal year 2022, AnMed generated about $647 million in revenue.
Citigroup Global Markets Inc and TD Securities (USA) LLC served as lead underwriters on the issuance, purchasing the bonds for $125.7 million. The price reflected a discount of $1 million.