A delayed debt service payment led S&P Global Ratings on Wednesday to drop Norman Regional Health System's (NRHS) long-term bond rating to D from CC.
Agent Trust Oklahoma, the trustee for the Oklahoma healthcare provider's outstanding bonds, said on Friday an agreement was reached with bondholders to postpone the Sept. 1 payment until a $40 million senior revenue bond issue to be purchased by majority bondholders of existing debt closes by Tuesday, according to
"Nonpayment is an event of default and the bond documents do not include a formal grace period, but the trustee is providing the (Norman Regional Hospital Authority) a short-term forbearance regarding the September 1, 2026 debt service payment on the bonds with the support and direction of the majority bondholders," the notice said. "If this payment is cured on the terms set forth, the parties expect a waiver regarding timing for that payment."
S&P's rating report referenced the notice, noting "bond documents would be amended to revise financial and other covenants, as well as provide additional security in the form of real and personal property of NRHA for the existing and new bonds." It added that the Series 2026 bonds will have priority over outstanding bonds.
NRHS remains on track to close the deal by Tuesday, a spokesperson said on Thursday.
Uncertainty over
The health system had $247.45 million of outstanding bonds from the three issues as of June 30, 2025, according to its
In 2025, Moody's Rating downgraded the system's rating to Caa2 with a negative outlook from B1, citing management turnover and "
