Ontario, Calif.-based Prime Healthcare has closed on a $1.5 billion bond amid Moody's raising its rating outlook to "Positive."
The support behind the financing led to a total bond offering upsize to $1.5 billion from $750 million. The health system used the senior secured notes, due in 2029, to redeem its 7.25% senior secured notes due next year, to repay outstanding indebtedness, pay related fees and expenses, and to raise funds for pending acquisitions, according to a Sept. 4 news release.
"The strength of Prime Healthcare's strategic vision and financial model is demonstrated by the successful completion of this financing," Steve Aleman, CFO of Prime Healthcare, said in the release. "This transaction positions Prime to continue expanding its integration strategies, pursue acquisitions, and ensure future growth."
The Moody's rating update reflects solid liquidity expectation for the next 12-18 months. It pointed to Prime's scale and ability to turn around distressed or underperforming hospital assets.
"Prime has saved and transformed over 40 hospitals across the country, and our strong operations and financial position enable us to invest and improve facilities that align with our mission to turn around hospitals, provide clinically excellent care, and expand access for all," Sunny Bhatia, MD, president and CMO of Prime Healthcare, said in the release.