Nonprofit organization WoodBridge Healthcare intends to use bond financing debt to acquire a three-hospital system in Pennsylvania from Community Health Systems, The Scranton Times-Tribune reported Sept. 23.
The Wilkes-Barre Finance Authority issued a public notice outlining how it would act as the financing system to issue up to $180 million in tax-exempt revenue bonds on behalf of WoodBridge, according to the report.
The nonprofit plans to use the funds to acquire CommonWealth Health, a financially challenged system that includes Regional Hospital of Scranton, Moses Taylor Hospital and Wilkes-Barre General Hospital.
WoodBridge would also use the money to renovate, expand and upgrade the facilities and create a debt-service reserve fund and pay costs of issuance of the bonds, according to the report.
The Wilkes-Barre Finance Authority on Oct. 2 will hold a public hearing on the bond financing plan.
Franklin, Tenn.-based CHS signed a definitive agreement in July to sell CommonWealth Health to affiliates of WoodBridge for $120 million. CHS expects the deal to close in the fourth quarter, pending regulatory approval and closing conditions.
Becker's has reached out to WoodBridge and will update this story as more information becomes available.