Mount Nittany Medical Center Series 2018 A & B

Case studies

Mount Nittany Medical Center Series 2018 A & B

$48,730,000 Series A Tax-exempt Fixed Rate Bonds
$18,470,000 Series B Federally Taxable Bonds

About Mount Nittany Medical Center

Mount Nittany Medical Center (Ponder client since 2007) is central Pennsylvania hospital operating at 260 licensed-bed acute-care community hospital. Mount Nittany Health System including the Medical Center generated $420 million in revenue in fiscal year 2017. The Medical Center is located in State College, Pennsylvania home to the main campus of Penn State University. Mount Nittany serves Centre County, with a population of approximately 161,400 people and has a 77% market share in its primary service area, Centre County. Mount Nittany Health System is the second largest employer in the county, employing over 2,500 people.

Focus on Value:

Ponder advised Mount Nittany in the planning and execution of the sale of both series of bonds: $48.73 million in Series 2018A Tax-Exempt Fixed Rate Bonds, along with $18.14 million in Series 2018B Federally Taxable Fixed Rate Bonds.
The 2018A bonds will be used to:

  • Current refund for interest cost savings $19.25 million the Series 2012A&B bonds
  • Fund (or reimburse) Mount Nittany for hospital capital expenditure totaling approximately $32 million

The 2018B bonds will be used to:

  • Advance refund for interest cost savings $17.17 million of the Series 2012A bonds

Series 2018A tax-exempt serial bonds saw good demand and yields were lowered 2-5 basis points. The 2047 bonds were heavily oversubscribed and yields were lowered 10 basis points.. The 2018B taxable bonds were underwritten 5 basis points tighter than the initial pricing by the lead manager to achieve the required minimum savings target.

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