The Connecticut Health and Educational Facilities Authority plans to sell $260 million of fixed-rate, tax-exempt Series A revenue bonds for Hartford HealthCare Corp. on Thursday, following a one-day retail order period.
The refinancing deal will restructure debt, said Jeanette Weldon, the authority’s managing director. Citi is the primary underwriter of the bonds.
Next week, CHEFA also will price $88.7 million of Series B and $45.1 million of Series C variable-rate bonds that will include $60 million for building a parking garage and improvements to the Hartford Hospital emergency department.
Hartford HealthCare is Hartford Hospital’s regional care network, which also includes MidState Medical Center, Windham Hospital, Hospital of Central Connecticut, Institute of Living psychiatric center, VNA HealthCare; VNA Central Connecticut, Clinical Laboratory Partners, Hartford Medical Group, Eastern Rehabilitation Network, and two regional behavioral health centers, Rushford and Natchaug Hospital.
Hartford HealthCare signed an affiliation agreement with Central Connecticut Health Alliance and its hospitals on Feb. 1, one week after it received Federal Trade Commission approval. Since the 1990s, the two had collaborated on clinical and educational initiatives.
Moody’s Investors Service rates the bonds A2, while Fitch Ratings and Standard & Poor’s rate them an equivalent A, all with stable outlooks.
Fitch said its rating reflects “HHC’s light debt burden, strong liquidity metrics relative to debt levels, and leading market share in its primary service area.” Credit concerns include historically low operating profitability.
Weldon said the CHEFA does not expect insurance or swaps for the bonds.
“We expect a structure of serials and call provisions are to be determined,” she said.
Hawkins Delafield & Wood LLP is bond counsel. Carmody & Torrence LLP is special counsel. Shipman & Goodwin LLP is counsel for Hartford HealthCare and Ropes & Gray LLP is counsel for the underwriters.