By Cristal Cody
Tupelo, Miss., Oct. 26 – Sutter Health priced $1,989,205,000 of taxable bonds (A1/A+/A+) in four tranches, according to a market source.
Sutter Health sold $300 million of 1.321% bonds due Aug. 15, 2025 at par to yield a spread of 95 basis points over Treasuries.
A $700 million offering of 2.294% bonds due Aug. 15, 2030 priced at par to yield a Treasuries plus 145 bps spread.
A $400 million tranche of 3.161% bonds due Aug. 15, 2040 was sold at par to yield a 150 bps over Treasuries spread.
Sutter Health placed $589,205,000 of 3.361% bonds due Aug. 15, 2050 at par to yield a spread of 170 bps over Treasuries.
Morgan Stanley & Co. LLC was the lead manager.
Proceeds will be used to refund outstanding bonds.
Sutter Health is a not-for-profit health care system based in Sacramento, Calif.
| Issuer: | Sutter Health
|
| Amount: | $1,989,205,000
|
| Description: | Series 2020A taxable bonds
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Co-managers: | J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Goldman Sachs & Co. LLC
|
| Trade date: | Oct. 22
|
| Settlement date: | Oct. 29
|
| Ratings: | Moody’s: A1
|
| S&P: A+
|
| Fitch: A+
|
| Distribution: | 3(a)(4) exempt
|
|
|
| Five-year bonds
|
| Amount: | $300 million
|
| Maturity: | Aug. 15, 2025
|
| Coupon: | 1.321%
|
| Price: | Par
|
| Yield: | 1.321%
|
| Spread: | Treasuries plus 95 bps
|
| Call features: | Make-whole call before May 15, 2025 at Treasuries plus 15 bps; thereafter at par
|
|
|
| 10-year bonds
|
| Amount: | $700 million
|
| Maturity: | Aug. 15, 2030
|
| Coupon: | 2.294%
|
| Price: | Par
|
| Yield: | 2.294%
|
| Spread: | Treasuries plus 145 bps
|
| Call features: | Make-whole call before Feb. 15, 2030 at Treasuries plus 25 bps; thereafter at par
|
|
|
| 20-year bonds
|
| Amount: | $400 million
|
| Maturity: | Aug. 15, 2040
|
| Coupon: | 3.161%
|
| Price: | Par
|
| Yield: | 3.161%
|
| Spread: | Treasuries plus 150 bps
|
| Call features: | Make-whole call before Feb. 15, 2040 at Treasuries plus 25 bps; thereafter at par
|
|
|
| 30-year bonds
|
| Amount: | $589,205,000
|
| Maturity: | Aug. 15, 2050
|
| Coupon: | 3.361%
|
| Price: | Par
|
| Yield: | 3.361%
|
| Spread: | Treasuries plus 170 bps
|
| Call features: | Make-whole call before Feb. 15, 2050 at Treasuries plus 30 bps; thereafter at par
|
|
|
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