By Sheri Kasprzak
New York, Jan. 25 - Sutter Health of California priced $1.075 billion of series 2011 revenue bonds, upsized from $900 million, according to a pricing sheet. The offering had been slated to price for institutional investors on Wednesday, but the deal was accelerated due to improved market conditions, insiders said.
The sale included $325 million of series 2011A bonds sold through the California Statewide Communities Development Authority and $750 million of series 2011B bonds sold through the California Health Facilities Financing Authority.
The 2011A bonds are due 2016 to 2024 with term bonds due 2026 and 2042. Serial coupons range from 4% to 6%. The 2011B bonds are due 2016 to 2024 with term bonds due 2026, 2031 and 2042. Serial coupons range from 4% to 6%.
Morgan Stanley & Co. Inc. was the senior manager with Bank of America Merrill Lynch and Sutter Securities Inc. as the co-managers.
Proceeds will be used to finance the health care system's ongoing capital plan and refund existing debt.
| Issuer: | Sutter Health/California Health Facilities Authority/California Statewide Communities Development Authority
|
| Issue: | Series 2011 revenue bonds
|
| Amount: | $1.075 billion
|
| Type: | Negotiated
|
| Underwriters: | Morgan Stanley & Co. Inc. (lead), Bank of America Merrill Lynch and Sutter Securities Inc. (co-managers)
|
| Ratings: | Moody's: Aaa
|
| Fitch: AAA
|
| Pricing date: | Jan. 25
|
| Settlement date: | Feb. 10
|
|
|
| $325 million series 2011A
|
| Maturity | Type | Coupon
|
| 2016 | Serial | 5%
|
| 2017 | Serial | 4%
|
| 2018 | Serial | 5%
|
| 2019 | Serial | 5%
|
| 2020 | Serial | 5.5%
|
| 2021 | Serial | 5.5%
|
| 2022 | Serial | 5%
|
| 2023 | Serial | 5.25%
|
| 2024 | Serial | 5.25%
|
| 2026 | Term | 5.5%
|
| 2042 | Term | 6%
|
|
|
| $750 million series 2011B
|
| Maturity | Type | Coupon
|
| 2016 | Serial | 5%
|
| 2017 | Serial | 4%
|
| 2018 | Serial | 4.125%
|
| 2019 | Serial | 5%
|
| 2020 | Serial | 5.5%
|
| 2021 | Serial | 5.5%
|
| 2022 | Serial | 5%
|
| 2023 | Serial | 5.25%
|
| 2024 | Serial | 5.25%
|
| 2026 | Term | 5.5%
|
| 2031 | Term | 5.875%
|
| 2042 | Term | 6%
|
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