CHICAGO — A Michigan-based hospital system today will begin converting $125 million in auction-rate debt into a variable-rate mode, while next week Ohio's Lake Hospital System will price nearly $190 million of variable- and fixed-rate revenue bonds, in a pair of transactions that will allow the systems to exit the troubled auction-rate market.

Each hospital system had most if its debt in auction-rate mode, a market that has largely collapsed since February as auctions failed and issuers began to restructure the debt in an effort to avoid unexpected expenses from rising interest rates.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.