CHICAGO— The Illinois Finance Authority board gave preliminary approval to a nearly $200 million financing planned by Centegra Health System for a new hospital far northwest of Chicago.
Proceeds would finance costs associated with the construction and equipping of a new 384,000-square foot, 128-bed acute care hospital facility in the far northwest Chicago community of Huntley. The system currently operates hospitals in McHenry and Woodstock, all far northwest of Chicago.
"Centegra Hospital-Huntley will be located in southern McHenry County to meet the existing bed need, as determined by the Illinois Department of Public Health and the Illinois Health Facilities and Services Review Board" as well an "the anticipated increase in medical/surgical bed need" expected after 2015, IFA documents read.
Centegra Health System is rated BBB-plus with a stable outlook by Standard & Poor's, which affirmed it last month. Fitch Ratings affirmed the system's A-minus and negative outlook last October.
The system is considering various structures for the sale including a mix of fixed-rate and floating-rate debt and possibly a private placement. JPMorgan is underwriter with Kaufman Hall as financial advisor and Jones Day is bond counsel.
The authority's executive director, Christopher Meister, also marked the IFA's 10th anniversary at the Feb. 11 meeting by reflecting on its work.
Lawmakers consolidated seven of the state's various conduit bonding agencies to create the IFA in 2004 at the behest of then Gov. Rod Blagojevich with the aim of better coordinating its financing, job creation and job retention mission.
The agency has closed on 1,077 financing projects valued at nearly $31 billion with about $25 billion outstanding. The IFA also is serving as issuer for the state's expanded $2 billion state revolving fund program and oversaw the state's allocation of Midwestern disaster area borrowing.
The board also welcomed a new member, former state budget director David Vaught. Gov. Pat Quinn announced Vaught's appointment in December. He was appointed budget director in 2009 and later became director of the state's Department of Commerce and Economic Opportunity before his retirement in late 2012.
