Sentara Healthcare Series A & B
$50,000,000 Series A Tax-Exempt 10 Year Put Bonds
$88,620,000 Series B Tax-Exempt 30 Year Fixed Rate Bonds
About Sentara Healthcare
Sentara Healthcare is the controlling entity of an integrated healthcare delivery system providing an array of healthcare services in (a) its primary service area of Hampton Roads in southeastern Virginia where Sentara controls seven hospitals, (b) its secondary service area known as the Blue Ridge Service Area, where Sentara controls the Sentara RMH Medical Center in Harrisonburg, Virginia, and Martha Jefferson Hospital in Charlottesville, Virginia, and (c) several additional service areas surrounding (i) Potomac Hospital Corporation of Prince William in Woodbridge, Virginia, together with an area surrounding Fredericksburg, Virginia, where Sentara controls certain physician groups, (ii) Halifax Regional Hospital in South Boston, Virginia, and (iii) Albemarle Medical Center in Elizabeth City, North Carolina.
Focus on Value:
Ponder advised Sentara in the planning and execution of the sale of both series of bonds: $50 million of Series 2018A 10 year put bonds, along with $89 million of Series 2018B 30 year term bonds.
- The 2018 bonds are being used to provide committed capital to refund the Series 2017 interim variable rate bank financing which was issued in December.
- Sentara issued 4% coupon bonds in the 30-year term and incorporated 10 year put bonds to take advantage of the shape of the yield curve. This strategy resulted in a blended TIC of 3.88%.
- The series 2018A put bonds were heavily oversubscribed and yields were lowered 15 basis points. The 2018B term bonds also saw strong demands and yields were lowered 6 basis points.
- In addition to this bond issue, Sentara is expected to issue approximately $155 million of VRDBs in daily and weekly modes, backed by SBPAs following a Ponder lead competitive bid process.