MultiCare Health System
Application Acceptance: November 10, 2022 Please note all information provided below is as of the date of the application submission with the exception of Loan Size & Closing Date.
Obligor: MHS is an integrated healthcare delivery system providing inpatient, outpatient and other healthcare services primarily to the residents of Pierce, King, Spokane and Thurston counties and, with respect to pediatric care, much of the southwest Washington region. As of December 21, 2021, MHS was licensed to operate 2,099 inpatient hospital beds, including 120 beds associated with a joint venture psychiatric hospital in Tacoma, Washington. MHS operates nine acute care facilities (Tacoma General Hospital, Good Samaritan Hospital, Allenmore Hospital, Mary Bridge Children’’ Hospital, Auburn Medical Center, Covington Hospital, Deaconess Hospital, Valley Hospital and Capital Medical Center) and one behavioral health hospital (Navos). MHS also operates eight outpatient surgical sites, five free-standing emergency departments, home health, hospice, and multiple urgent care, primary care and multispecialty clinics located throughout the MHS service areas.
On April 1, 2021, MHS completed the purchase of Capital Medical Center in Olympia, Washington from an affiliate of LifePoint Health and physician owners to acquire a 100% ownership interest. Capital Medical Center is licensed to operate 107 inpatient hospital beds as well as operates multiple primary care and multispecialty clinics within Thurston County.
Loan Size: $210,170,000
Description of Loan: Proceeds of the loan will be used to refund all or a portion of the WHCFA Series 2017E Bonds and all or a portion of two taxable term loans. Proceeds may also be used to fund costs of issuance.
Interest Cost Savings: It is anticipated by MHS that it will save approximately $20,100,000 in interest costs over traditional taxable interest rate financing over the term of the loan.
The lowered cost of borrowing from a tax-exempt financing will lower the operating expenses for MHS, thereby reducing its dependency on cash flow derived from revenue sources. Additionally, this will reduce the cost of providing care and lessen the need for rate increases. A tax-exempt financing through the Authority is the most cost effective method – when compared to other financing options and as a result will create financing cost savings. These cost savings benefits will be passed to the communities serviced by MHS through lowered rates and charges.
Underwriters: Banc of America Preferred Funding Corporation & Bank of America, N.A.
Closing Date: December 15, 2022