In April, Downers Grove, Ill.-based Advocate Health Care and Milwaukee-based Aurora Health merged to become the nation's 10th-largest nonprofit health system. Now, the combined Advocate Aurora Health plans its first bond sale since the deal was completed, according to The Bond Buyer.
Here are five things to know about the sale:
1. The planned sale is up to $1.2 billion refunding of Wisconsin debt. This includes the issuance of up to $950 million of tax-exempt debt.
2. Details of the sale are scarce. However, hospital officials anticipate significant cash flow savings with a restructuring that will smooth the existing combination of Advocate and Aurora annual debt service payment, said Dominic Nakis, CFO of Advocate Aurora Health.
3. Mr. Nakis added: "We will be combining the debt into an amended and restated master trust indenture to reflect the merger."
4. Mr. Nakis expects cash flow savings of $250 million over five years as a result of combining debt into an amended MTI.
5. The Bond Buyer reports hospital officials anticipate pricing the bonds on Aug. 6.
Read more about the planned sale here.
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