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Novant Health refinances $198 million of debt
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Published: August 19, 2008
Novant Health Inc. said yesterday that it has refinanced $198 million of debt.
The health-care system, which is the parent company of Forsyth and Thomasville medical centers, said that the refinancing would save about $17 million because of lower interest rates.
The old debt includes $53 million of 1996 bonds that range from 5.25 percent to 5.8 percent, and $145 million in 1998 bonds of about 5 percent.
Novant refinanced the combined $198 million at 4 percent. The average remaining life of the bonds is about 10 years. Because Novant is not-for-profit, the refinancing is approved by the N.C. Medical Care Commission.
Fitch Ratings and Moody's Investors Service reaffirmed their ratings on Novant Health. Fitch has a "AA-minus" rating with a stable outlook. Moody's has a "Aa3 "rating, which is equivalent to other agencies' "AA-minus," with a negative outlook because of potential integration risks associated with Novant's recent expansion strategies that include opening hospitals in suburban communities, its ownership stake in Health Management Associates and taking over management of Rowan Regional Medical Center in Salisbury.
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