By Patrick Sheridan
Duke University Health System is set to receive $499 million from a municipal bond sale with a portion of the money earmarked for construction of a new facility in Cary, N.C.
The North Carolina Medical Care Commission will the sell bonds and loan the proceeds to Duke, according to a preliminary official statement posted Monday on MuniOS.
The Series 2025 A Duke University Health System Health Care Facilities Revenue Bonds will have an initial fixed interest rate period, with two term bonds also included in the offering. The Series 2025 B bonds will have an initial long-term interest rate period.
Delivery of the bonds is expected to be on or about June 25. Interest is payable starting on Dec. 1 and again on June 1.
Payment of the 2025 bonds depends on the ability of Duke and the existing designated members and any future members of the combined group, to generate revenues sufficient to provide for payment of the bonds and other debt while also paying their operating and other expenses, according to the preliminary official statement.
Proceeds will be used for the acquisition, construction and equipping of a new medical office building and supporting infrastructure on the Duke Health Cary campus. The development will consist of a freestanding emergency department, an ambulatory surgery center, specialty clinics and other medical facilities.
Duke operates an integrated care network founded in 1998 that includes four hospitals, and a network of more than 300 clinics in 115 unique locations, according to the preliminary offering statement. It includes primary care offices, urgent care centers, multi-specialty clinics and outpatient surgery centers. The system also includes the Duke Health Integrated Practice, one of the nation’s largest academic multi-specialty group practices.
In fiscal year 2024, Duke generated $6.8 billion in total operating revenue. It recorded approximately 73,000 inpatient admissions, performed 88,000 surgeries and had five million outpatient visits.
S&P Global Ratings, Moody’s Ratings and Fitch Ratings have issued ratings of AA-, Aa3 and AA-, respectively, to the bonds.
J.P. Morgan Securities is the underwriter on the offering.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
(END) Dow Jones Newswires
June 03, 2025 13:21 ET (17:21 GMT)
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