Mayo Clinic has sold $500 million in bonds to investors as the Rochester, Minn.-based health system prepares to invest heavily in capital projects over the next five years, the Post Bulletin reported March 31.
Mayo Clinic has not designated the bond sale for a specific project, but the system noted it is planning large capital expenditures. Over the next five years, the system expects capital spending of $6.5 billion, according to the report.
"The specific uses of the net bond proceeds have not been determined, but debt financing is a routine element of Mayo Clinic's capital formation," a Mayo Clinic spokesperson told the Post Bulletin. "Debt financing is a routine element of Mayo Clinic's long-term financial planning, and the current rate environment makes it an opportune time to issue bonds."
The net benefit of the bond sale to Mayo Clinic will be $497.5 million after issuance costs are deducted, according to the report.
Read the full Post Bulletin article here.