Longmont seeks consents for Colorado Health revenue refunding bonds

By Susanna Moon

Chicago, April 4 – Longmont United Hospital, Colo., said it began a consent solicitation for the $48,965,000 Colorado Health Facilities Authority hospital revenue refunding bonds (Longmont United Hospital project), series 2006B.

Longmont is asking for a waiver and amendment related to the delivery of some financial statements, according to an issuer notice.

The consent deadline is 5 p.m. ET on April 14. The consent record date is April 1.

In lieu of the delivery of the information for Longmont’s fiscal year ended Dec. 31, Longmont proposes to provide:

• Within 60 days following the end of the quarter ended March 31, the unaudited consolidated financial report of Longmont, including the operations of Longmont from Jan. 1 to March 31; and

• Within 90 days after the quarter ended June 30, the unaudited consolidated financial report of Longmont including the operations of Longmont from April 1 to June 30.

Longmont also proposes to provide the following information, within 150 days following the end of the period:

• For the 12-month period ended Dec. 31, a Longmont annual no-default certificate and a certificate of a hospital representative setting forth management-prepared calculations of net income available for debt service, loan payments, days cash on hand and ratio of net income available for debt service to the loan payments for that 12-month period;

• For the 12 months ending June 30, the audited consolidated financial report of CHI (into which the operations of Longmont will be consolidated for the period from Aug. 1, 2015 to June 30, 2016);

• For the 12 months ending June 30, the unaudited consolidated financial statements of Longmont for that period; and

• For the 12 months ending June 30, the Longmont annual no-default certificate and a certificate of a hospital representative setting forth management-prepared calculations of net income available for debt service, loan payments, days cash on hand and ratio of net income available for debt service to the loan payments for that 12-month period.

Also, so long as any financial statements are available on emma.msrb.org, the posting of any financial statements on emma.msrb.org no later than the deadlines described above will be deemed to be compliance with the related requirement for the financial statements.

Beginning with its fiscal year ending June 30, 2017, Longmont proposes to amend the agreement to require Longmont to the deliver the following in lieu of the information:

• Within 150 days following the end of each fiscal year, the audited combined or consolidated financial statements of CHI for that fiscal year;

• Within 150 days following the end of each fiscal year, the unaudited consolidated financial statements of Longmont for that fiscal year;

• Within 150 days following the end of each fiscal year, the Longmont annual no default certificate;

• Within 150 days following the end of each fiscal year, a certificate of a hospital representative setting forth management-prepared calculations of net income available for debt service, loan payments, days cash on hand and ratio of net income available for debt service to such loan payments for the fiscal year then ended; and

• Within 60 days of the first three fiscal quarters of each fiscal quarter and within 90 days of the fourth fiscal quarter of each fiscal year, the unaudited consolidated financial statements of Longmont for that fiscal quarter; and

• So long as financial statements are available on emma.msrb.org, the posting of the financial statements by the deadlines will be deemed to be compliance with the related requirement for the financial statements.

Longmont said it is requesting consent to waivers and amendments from holders of at least a majority of the bonds.

The bonds were issued on June 12, 2006 with proceeds loaned to Longmont under a mortgage and loan agreement.

For questions, call Dan Frank, chief financial officer, Longmont United Hospital, at 303 651-5488 or email dan.frank@luhcares.org.

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