By Patrick Sheridan
The Pennsylvania Economic Development Financing Authority is selling $700 million of municipal bonds on behalf of a nonprofit corporation affiliated with University of Pittsburgh Medical Center, with the proceeds going to fund capital improvements.
The authority plans to offer $312.6 million in Series 2025 A UPMC Revenue Bonds, and $387.3 million in Series 2025 B fixed rate UPMC Revenue Bonds, as well as two term bonds, according to a preliminary official statement posted Tuesday on MuniOS.
Interest on the bonds will be payable every March 15 and Sept. 15 starting later this year. The bonds are limited obligations of the authority and are backed by loan payments made by the UPMC.
Proceeds of the sale will be used to fund capital projects and pay for issuance costs, according to the official statement. Money from the Series 2025 A bonds will be used to refund all or a portion of the UPMC Taxable Revenue Notes Series 2020 D-1. Proceeds from the Series 2025 B securities will also be used to refund all or a portion of the outstanding UPMC Revenue Bonds Series 2014 A.
Headquartered in Pittsburgh, the UPMC system owns and operates more than 40 hospitals and 800 clinics, primarily serving residents of Pennsylvania as well as western New York and northwestern Maryland. It is the largest nongovernmental employer in the state with about 100,00 part- and full-time employees, according to the official statement.
Moody’s, S&P Global Ratings and Fitch Ratings have assigned ratings of A2, A, and A to the bonds, respectively.
Barclays is the senior manager on the 2025A bond sale, and RBC Capital Markets is senior manager on the 2025B bond sale.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
March 12, 2025 17:12 ET (21:12 GMT)
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