The Arizona Health Facilities Authority has approved an application from Banner Health for the issuance of $227M 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, California and Nevada. Banner owns and operates a number of healthcare facilities in the greater Phoenix area, including Good Samaritan Medical Center, Lutheran Heart Hospital, Banner Desert Medical Center, Mesa Lutheran Medical Center, Banner Thunderbird Medical Center, Valley Lutheran Medical Center and Banner Estrella Medical Center.

Banner proposes to use the funds to refinance a bridge loan from JPMorgan Chase Bank and pay certain costs of issuing the Series 2008A Bonds. The proceeds of the bridge loan were used to redeem the entire outstanding principal amount of the Authority’s Series 2005D Bonds, 2005E Bonds and 2005F Bonds.

The anticipated structure is a series of traditional fixed rate bonds with a final maturity of 30 years. There will be no credit enhancement.

Institution Type:
Hospital

Bond Issue Date:
4/1/2008

Amount Financed:
100 Million +

Interest Rate:
Fixed

Bond Denomination:
5,000

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