Beaumont Hospital, Mich., postpones sale of $583.72 million revenue and refunding bonds

By Cristal Cody

Tupelo, Miss., Sept. 18 - The William Beaumont Hospital in Michigan has postponed the pricing of $583.72 million revenue and refunding bonds over market concerns after Wall Street's shakeup and the Federal Reserve's emergency loan to insurer American International Group Inc., a source said Thursday.

The series 2008V fixed-rate and series 2008W term-rate bonds were expected to price on Thursday.

The bonds (A1/A/A+) will be sold through the City of Royal Oak Hospital Finance Authority in Michigan.

Morgan Stanley & Co. Inc. is the senior manager of the negotiated sale. Goldman, Sachs & Co. and Banc of America Securities LLC are co-managers.

Proceeds will be used for construction and renovation costs, to refund outstanding bonds and to pay termination payments made under interest rate hedge agreements for the refunded bonds.

The hospital plans to refund the $48.675 million in series 2001N revenue refunding bonds, $31.275 million series 2001O revenue refunding bonds, $82.675 million series 2003P revenue bonds, $47.4 million series 2003Q revenue refunding bonds and $206.1 million series 2006R and 2006S revenue bonds and series 2006YT revenue and refunding bonds.

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