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West Texas County Sells $87 Million in Hospital Bonds

By Munichain News Desk

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.

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