Palmetto Health Finances its Future through a JEDA Bond
COLUMBIA, S.C. – Bond financing facilitated by the South Carolina Jobs-Economic Development Authority (JEDA) will help Palmetto Health pay off previous financing for major projects in Columbia and Easley and help pay for others.
The $127 million in new, tax-exempt Series 2009 fixed-rate bonds will refinance the healthcare system’s Series 2003B bonds and fund hospital improvements.
"Palmetto Health continues to grow and innovate, placing ever-increasing demands on our physical infrastructure. JEDA funding has helped us achieve such landmarks as the opening of our new 124-bed heart hospital and 800-car parking garage and now is helping us achieve new savings as we refund older bonds and move ahead at a more favorable rate," said Tom Smith, Director of Treasury Services at Palmetto Health.
Palmetto Health, formed by the 1998 merger of Richland Memorial Hospital and Baptist Hospital, employs nearly 8,000 people at what are now Palmetto Health Richland, Palmetto Health Baptist, Palmetto Health Heart Hospital, Palmetto Health Children’s Hospital – all in Columbia – and Pickens County’s Baptist Easley Hospital (now a joint venture with Greenville Hospital System.)
"Taking advantage of the best available financing in any given market condition is critical to the ongoing success of innovative, progressive institutions like Palmetto Health," said Kathy McKinney of Haynsworth Sinkler Boyd, P.A., counsel to underwriters Merrill Lynch & Co. "Having a part in this is gratifying."
Palmetto Health also was assisted by Jones Day of Chicago as bond counsel and McNair Law Firm, P.A. of Columbia as the healthcare system’s counsel.
Harry A. Huntley, CPA, Executive Director of JEDA, South Carolina’s state enterprise agency, added, "This isn’t just about numbers and dollars. These kinds of financial arrangements make possible high-quality delivery of critical healthcare services. We’re also pleased to have a role in this."