Bronx, N.Y.-based Montefiore Health System has issued bonds totaling about $1.2 billion, reports The Real Deal.
Montefiore issued $685 million under a new obligated group credit structure through the Dormitory Authority of the State of New York as revenue bonds with a 30-year final maturity, the report states, citing records filed with New York City Aug. 10. The Montefiore obligated group separately issued another $482 million in revenue bonds.
Montefiore used bond money to pay down about $315 million in previous bonds insured by the Federal Housing Administration, including bonds backed by securities guaranteed by the Government National Mortgage Association, according to the city records. Bond money was also used to pay back the hospital system for $357 million in capital improvements systemwide.
A Montefiore spokesperson told The Real Deal the financing deal restructures most of the system's current debt and, "embarking on this path positions Montefiore with a debt structure appropriate for health systems of its scale."
Read The Real Deal's full report here.
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