ProMedica is seeking up to $870 million in revenue bonds for construction and facilities projects.
Though the bonds do not involve taxpayer money, Lucas County, Ohio, commissioners on Tuesday authorized the issuance and sale for the tax-exempt bonds as required by federal tax code.
Funding will be used for projects such as the 13-story, 302-bed Generations of Care Tower under construction at ProMedica Toledo Hospital and ProMedica Children's Hospital, as well as capital improvements to existing primary and specialty care facilities, information technology systems, and electronic medical records, according to bond documents.
Some of the bond funding will be used to refinance existing debt from 2017 and to have the option to refinance other debt in the future should terms be favorable, said Mike Browning, ProMedica's chief financial officer.
Bonds are scheduled to go out on the market for investors to buy in October, Mr. Browning said.
"We're looking at 30-year bonds," Mr. Browning said. "With interest rates being favorable as they are today, we will issue them for as long as possible."
ProMedica received approval from commissioners in March for up to $300 million in bonds for many of the same projects listed in the most recent request, including the Generations of Care project.
The patient tower is scheduled to open in mid-2019. Mr. Browning said the bonds will in part fund construction beyond original plans.
"This tower will take us to the next phase of health care ... and positions us well for the next 10, 20, and 30 years."
