Moody’s Investors Service affirmed Hazelden Foundation’s A3 rating ahead of its upcoming $20 million sale of fixed-rate debt to finance various projects that will raise the prominent Minnesota-based treatment center’s debt load by 70%.
The foundation will have $32.9 million of rated debt after the sale. Its outstanding debt is in variable-rate mode supported by letters of credit from US Bank, which is rated Aa2. Center City is serving as the conduit issuer. Moody’s assigns a stable outlook to Hazelden’s rating.