The Midland County Hospital District issued $86.7 million in bonds to finance a series of upgrades to a hospital in west Texas.
The bonds mature between 2025 and 2054, yielding between 2.99% and 4.4%. They received an insured rating of AA from S&P Global Ratings and uninsured ratings of AA- from Fitch Ratings and A- from S&P.
The rating reflects the hospital district’s “consistently strong operating performance and an improving balance sheet that drives a robust revenue defensibility,” Fitch analysts wrote.
The bond proceeds will fund the construction and equipping of an office building for Midland Health, a health-care system based in west Texas. The proceeds will also finance renovations at Midland Health’s flagship hospital and an out-patient center, as well as the construction of additional parking at the hospital.
Midland County has a population of 172,000. It received its name for its location at the midway point on a rail line between Fort Worth and El Paso, according to the Texas Almanac.
The bonds are limited obligations of the hospital district, which is a political subdivision of the state. They are payable by Midland Health revenue.
J.P. Morgan Securities LLC served as lead underwriter on the issuance, purchasing the bonds for $90.9 million. The price reflected a premium of $4.8 million and a discount of $512,000. Hilltop Securities Inc acted as financial advisor.