VEHBFA issued $31.350M in 2013 Series A (tax-exempt) bonds on behalf of the Rutland Regional Medical Center (RRMC) to refund previously issued VEHBFA/RRMC debt and to cover the cost of issuance of the 2013-A bonds. RRMC expects to save approximately $542,000 in year one and an annual median savings of $400,000 from the refunding due to the lower credit spread of the new bonds.
“The weakening of some FY2013 year-to-date financial and operating metrics hint at the sector’s growing challenges ahead…” Click here for the full report.
According to Standard & Poor’s, “…the 2012 median ratios for stand-alone hospitals remained generally stable compared with the prior year. However, some measures of financial operating performance are beginning to weaken despite revenue growth across most rating
categories.” Click Here for the full report.
The VEHBFA Board met on August 5, 2013 and approved bond financings for the Rutland Regional Medical Center and Norwich University. Rutland and Norwich expect to close on the financings in September.
“Revenue pressure on all fronts intensifies need to grapple with traditional cost structure.” Click here for the full report.
For organizations that access the capital markets on a limited basis, undertaking a bond issue can be a daunting challenge. We are fortunate to have an organization such as the Vermont Education and Health Buildings Financing Agency available to assist in the many facets of financing transactions.
Saint Michael’s College has issued debt periodically and our experience with VEHBFA has been exceptional. The team assembled by VEHBFA, including Bob Giroux as Executive Director, bond counsel and financial advisors, has been an exceptionally well qualified, knowledgeable and professional asset for borrowers such as Saint Michael’s. This group gives you confidence that your transaction will be professionally managed, performed in a timely manner and done in compliance with IRS regulations when applicable. They’re also great people to work with making the process from start to finish an enjoyable experience.
Vice President for Finance and Treasurer
Saint Michael’s College
Champlain College has worked with VEHBFA on a number of financing projects over the years. Most recently they provided assistance in the financing process for our new residence hall construction project on campus. During the financing process, Bob and his team proved to be valuable assets in giving us the knowledge, support and guidance we had hoped for in making this transaction a successful one. VEHBFA’s involvement and support in projects such as this continually help Champlain College to provide the best possible resources and infrastructure to its students and for that we are appreciative.
David J. Provost
Senior Vice President, Finance & Administration,
Rutland Regional Medical Center has had a long history of borrowings through VEHBFA. Most recently, we refinanced all of our outstanding debt due to the favorable rates. I have found Bob and the Board to be very knowledgeable in evaluating the various financings that we have done. They have also been very proactive in addressing the complexities of Post Issuance Compliance, and have been an excellent resource with education and awareness to the various borrowers. Bob and the Board have always been very responsive in helping us meet our various timing and deadline requests. During this very difficult period of healthcare reform, it is good to know that we have excellent resources available, as well as access to low cost tax exempt financing to continue to support our capital intensive services”
Vice President and Chief Financial Officer
Rutland Regional Medical Center