By Patrick Sheridan
The El Paso County Hospital District in Texas will sell approximately $265.5M of municipal bonds with a portion of the proceeds going to fund improvements at a local medical center and expand treatment services for burn victims.
The General Obligation Bonds Series 2025 will be comprised of serial bonds maturing from August 2026 to August 2045, and two term bonds maturing in 2050 and 2055, according to documents posted on MuniOS. The securities are subject to optional redemption years.
Pricing is expected on June 17, and closing is scheduled for July 10.
The bonds are direct obligations and are backed by payments from the levy and collection of an ad valorem tax on property within the district
Proceeds will be used to provide funds for acquiring, constructing, equipping, renovating and/or enlarging the district’s hospital system. That includes expanding cancer treatment facilities, services for burn victims and new clinical facilities in Central El Paso focused on older adult/geriatric care.
According to the roadshow document, the district’s primary asset is University Medical Center El Paso, a 394 licensed-bed facility that provides services to local residents, including the indigent and needy regardless of their ability to pay. The center had 18,267 admissions in fiscal year 2024.
In addition to UMC, the District’s healthcare system also includes specialized facilities such as UMC Surgical Hospital, El Paso Children’s Hospital, El Paso Health, University Medical Center Foundation and El Paso Children’s Foundation.
Fitch Ratings has assigned an A- rating to the bonds. S&P Global Ratings is expected to issue an AA rating to the debt based on insurance to be provided by Assured Guaranty.
J.P. Morgan Securities is senior manager of the offering.
Write to Patrick Sheridan at patrick.sheridan@wsj.com
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June 11, 2025 14:19 ET (18:19 GMT)
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