By Zaeem Shoaib
Stanford Health Care will receive about $424.9 million of proceeds from a municipal bond sale that will to finance healthcare facility projects and refund existing debt.
The bonds will be issued on Stanford's behalf by the California Health Facilities Financing Authority, according to documents posted Thursday on MuniOS.
Pricing is expected for as soon as June 3, and closing is scheduled for June 12.
The authority plans to issue $151.2 million of 2025 Series A bonds, $138.4 million of 2025 Series B-1 bonds and $135.3 million of 2025 Series B-2 bonds. Interest is payable starting on Aug. 15 and again on Feb. 15.
The bonds are limited obligations of the authority and will be backed by payments from Stanford Health Care made under a loan agreement.
Proceeds from the issuance will be used to finance the costs of the acquisition, construction, expansion, remodelling, renovation and equipping of certain facilities of Stanford Health Care. Money from the sale will also be used to refund $50 million of debt borrowed under a commercial paper program, and pay for issuance costs.
Stanford Health Care operates Stanford Hospital, a teaching hospital, and the Stanford University clinics, where the medical faculty of the Stanford University School of Medicine provide clinical services.
The corporation had total operating revenue of $9 billion in the fiscal year 2024, and has planned capital improvements of about $3.5 billion through the fiscal year 2028, according to a roadshow presentation.
Moody's, S&P Global Ratings and Fitch Ratings have assigned the bonds ratings of Aa2, AA- and AA, respectively.
Morgan Stanley and Goldman Sachs & Co. are lead managers on the issuance.
Write to Zaeem Shoaib at zaeem.shoaib@wsj.com
(END) Dow Jones Newswires
May 30, 2025 17:41 ET (21:41 GMT)
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