The Arizona Health Facilities Authority has approved an application from Banner Health Systems for the issuance of $325M of the Authority's Revenue Bonds. Banner was formed in 1999 when Lutheran Health Systems acquired and assumed most of the assets and liabilities of Samaritan Health System.

Banner provides healthcare and related services in the greater Phoenix area, Northeastern Colorado and adjoining areas of Wyoming and Nebraska, Alaska, Kansas, California and Nevada. Banner owns and operates a number of healthcare facilities in the greater Phoenix area, including Good Samaritan Regional Medical Center, Lutheran Heart Hospital, Desert Samaritan Medical Center, Mesa Lutheran Medical Center, Thunderbird Samaritan Medical Center and Valley Lutheran Medical Center.

The proceeds of the bonds will be utilized to: 1)expand and upgrade Good Samaritan Regional Medical Center; 2) construct a new 160 bed facility to be known as "Banner Estrella Medical Center; 3) refinance existing debt related to the acquisition and construction of the Luthern Heart Hospital; 4) expand the Neonatal Intensive Care Unit at Desert Samaritan Medical Center; 5) Expand and upgrade the Medical Imaging Department at Mesa Lutheran Medical Center; and 6) expand services at Thunderbird Samaritan Medical Center, Valley Luthern Medical Center, Mesa Lutheran Medical Center and Desert Samaritan Medical Center.

The bonds will bear interest at variable rates and the interest rates will be subject to being reset on a periodic basis with the rates to be established through an auction process. The bonds will be insured by AMBAC Assurance Corporation.

Institution Type:
Hospital

Bond Issue Date:
12/1/2002

Amount Financed:
100 Million +

Interest Rate:
Variable

Bond Denomination:
5,000

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