Harrisonburg, Virginia, sold $92 million in bonds on behalf of a local health care provider as part of a restructuring arrangement between the provider and the city.
The bonds, issued by the Economic Development Authority of the City of Harrisonburg, mature on August 15, 2046. They will bear interest at a weekly rate determined by the underwriter and remarketing agent. The securities received a rating of A1/VMIG 1 from Moody’s Investors Service and A+/A-1 from S&P Global Ratings.
The authority will loan the proceeds to a health care company, Sentara Health, which will use them to refund a previous issuance.
“The proceeds of the Bonds, together with other available funds, will be used by Sentara to undertake a current refunding of all of the Industrial Development Authority of the City of Harrisonburg, Virginia, Hospital Facilities Revenue Refunding Bonds (Sentara RMH Medical Center), Series 2016C,” according to the official statement accompanying the sale of the bonds.
Sentara is a nonprofit health care system operating in Virginia and northeastern North Carolina. Under a loan agreement with the city of Harrisonburg, Sentara purchased $100 million in bonds in 2016. Last month, the nonprofit obtained approval from the city to refinance those bonds.
Harrisonburg is a city of 50,000 in Virginia’s Shenandoah Valley. The bonds are limited obligations of the authority, payable by revenue from the loan between it and Sentara.
U.S. Bank Trust Company, NA served as underwriter on the issuance, purchasing the bonds for par.