The Orange County, Florida, Health Facilities Authority will offer $1.4 billion of hospital revenue bonds for Orlando Health the week of January 13.
OCHFA will sell taxable and tax-exempt debt to take out taxable bonds: Series 2024A and 2024B.
Orlando Health sold the Series 2024 bonds with short-term maturities on a taxable basis to generate cash for the purchase of hospitals in Alabama and Florida. At the time, it didn’t have enough information about the assets to sell them tax-exempt, said John Miller, senior vice president of finance at Orlando Health.
Although the hospitals are in two states, selling the bonds in one deal will save bond counsel and other fees, Miller said.
The taxable portion of the upcoming bond sale would likely be $400 million or less, he added.
JPMorgan and Morgan Stanley will be the underwriters. Kaufmann Hall is the municipal advisor and Chapman Cutler is the bond counsel.
Maturities have not yet been set, Miller said.
Fitch Ratings and S&P Global Ratings will rate the bonds later this month. Existing Orlando Health revenue bonds are rated A-plus with a positive outlook by S&P and AA-minus with a stable outlook by Fitch.
Orlando Health has $12 billion under management. It is based in Orlando, Florida and operates medical centers, hospitals, physician practices, urgent care facilities, nursing homes, and other operations in Florida, Alabama and Puerto Rico.
In February, Kaufman Hall and Moody’s Ratings