North Mississippi Health System Series 2021

27 Jul

Case studies

North Mississippi Health System Series 2021

Pricing Date: July 20, 2021

Closing Date: July 26, 2021

$200,000,000 Series 2021 Taxable Bonds


With the decline in taxable interest rates, North Mississippi Health System (“NMHS”) decided to bolster its balance sheet and borrow strategic debt for general corporate purposes and strengthen its competitive position.


  1. Due to recent uptrends in COVID-19 rates, a volatile interest rate market leading up to pricing saw credit spreads widen as investors focused in on all-in yield levels
  2. Relatively large undertaking of new taxable debt ($200 million) represented 150% increase of total outstanding long-term debt


  1. Rating Agency Process: Ponder aided NMHS in telling its story to both rating agencies and emphasizing the importance of the strategic borrowing to further NMHS’ mission
  2. Debt Capacity: Ponder advised on the overall financing size to optimize the borrowing within rating parameters
  3. Fixed Rate Pricing: A 30-year bullet maturity was selected given the relative value compared to other maturities
  4. Marketing: Advised through the marketing process including the investor presentation, Q&A preparation, and 1×1 investor calls
  5. Reception: 28 investors placed over $426 million in orders allowing the underwriter to lower the initially offered yield by 5bps

About North Mississippi Health System (“NMHS”): ‘A+ / AA’ (S&P / Fitch)

NMHS is the largest integrated health system in Mississippi consisting of a 634-bed flagship hospital in Tupelo (largest non-metropolitan hospital in the country), six community hospitals (304 total licensed beds), thirty-seven outpatient clinics, six outpatient centers, four skilled nursing facilities (with 266 total licensed beds) and a 947-member clinically integrated network of providers.

Pricing Results:

North Mississippi Series 2021 Pricing Results

Comparable Bond Sales:

North Mississippi Series 2021 Comparable Bond Sales