The Maryland Health and Higher Education Facility Authority plans to issue $150 million of revenue bonds on behalf of Johns Hopkins Health System Obligated Group the week of June 16.
The Series 2008B revenue bonds will be sold in three equal tranches of about $48.9 million each.
Proceeds will help finance two 18-story medical towers that will house a new Cardiovascular Critical Care Adult Hospital and a Children’s Hospital, according to the preliminary official statement. The projects will replace existing semi-private beds with a facility that will have 515 all-private acute beds along with 45 bassinets and ICU beds The plan is to expand operating room and critical care capacity, create new adult and pediatric emergency departments, and modernize the JHH campus.
Financial adviser on the deal is Killarney Advisors Inc. Underwriters are Goldman, Sachs & Co., Merrill Lynch & Co., Banc of America Securities LLC, PNC Capital Markets LLC, Quoin Capital LLC, and Wachovia Securities. McKennon Shelton & Henn LLP is bond counsel.
Moody’s Investors Service rates the bonds A1 with a stable outlook. Standard and Poor’s rate the bonds A-plus, and Fitch Ratings assigns a AA-minus with a stable outlook.
Standard and Poor’s said the rating reflects a strong business position, highlighted by solid market share in the somewhat fragmented greater Baltimore market, with a broad regional and national draw, driven by an “excellent” clinical reputation.