WASHINGTON — The Internal Revenue Service has closed its audit of $308 million of variable-rate bonds issued by Murray City, Utah, in a 2003 conduit health care transaction without any change to the bonds’ tax-exempt status.
Murray City said in an event notice filed with the Municipal Securities Rulemaking Board that the IRS had informed it of the closure of the audit in an April 5 letter.
The city loaned the proceeds from the Series A-D bonds to IHC Health Services Inc., a nonprofit organization wholly owned and operated by Intermountain Health Care Inc., to acquire and construct health care facilities and equipment, according to the official statement for the bonds.
IHC, at the time, owned or managed 21 hospitals in the Intermountain Western region, which included Utah, Idaho, and parts of Nevada and Colorado.
JPMorgan and Bear, Stearns & Co. were underwriters and remarketers for the bonds.
Chapman and Cutler LLP was bond counsel. Orrick Herrington & Sutcliffe LLP was underwriters’ counsel.
George K. Baum & Co. was financial consultant.
Katten Muchin Zavis Rosenman, now Katten Muchin Rosenman LLP, was special counsel to IHC Health Services.
