Regional Health Readies $68M

Rapid City-based Regional Health is set to enter the market Thursday with $67.5 million of variable-rate demand bonds, most of which will be used to refund insured variable-rate debt originally sold in 2003.

The issue includes about $7 million of new money that will be used to finance various capital projects across the system. Most of the rest of the issue will be used to refund variable-rate demand bonds that were insured by MBIA Insurance Corp., which has lost its triple-A status.

The variable-rate demand bonds will carry a letter of credit from US Bank NA.

Piper Jaffray & Co. is the underwriter, and Kauffman, Hall & Associates Inc. is financial adviser. Bond counsel is Jones Day. The South Dakota Health and Educational Facilities Authority is issuing the bonds.

Regional Health operates the only tertiary care hospital in a 350-mile radius. The system reported $390 million in revenue in fiscal 2007. It has about $153 million in debt.

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Healthcare industry
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