The county that includes Austin, Texas, issued $99.6 million in bonds to build medical clinics.
The bonds were sold in two series by Travis County Healthcare District. The Series 2023A bonds mature between 2024 and 2033, yielding between 3.13% and 3.37%. The Series 2023B bonds, which are taxable, mature between 2024 and 2043, yielding between 4.936% and 5.587%. The securities received a rating of Aa2 from Moody’s Investors Service and AA from Kroll Bond Rating Agency.
“The Aa2 issuer rating reflects the district’s large, dynamic tax base that has continued to post record growth balanced by risks associated with the provision of healthcare services and an insurance plan,” according to Moody’s.
The issuance comes as the county repurposes its healthcare district to provide direct healthcare services in addition to its traditional contracting practice. The district plans to create several primary care clinics and a multispecialty clinic, financed by the proceeds from the bond issuance.
Proceeds from the 2023A bonds will finance a renovation to the Rosewood Zaragosa Multispecialty Clinic in East Austin. The district expects the clinic to open in the fall of this year. It will serve low-income residents of the district who do not have health insurance.
Texas state law requires counties to provide healthcare services to the state’s poorest residents. Travis County Healthcare District targets providing those services to residents making up to 200% of the federal poverty level, defined as $14,580 for individuals or $30,000 for a family of four.
Siebert Williams Shank & Co, LLC served as lead underwriter on the issuance.