The Arizona Health Facilities Authority has approved an application from Banner Health for the issuance of $600M 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 finance and refinance the acquisition, construction, furnishing, improving and equipping of (1) the expansion of Banner Thunderbird Medical Center in Glendale, Arizona; (2) the construction of Banner Children’s Hospital at Banner Desert Medical in Mesa, Arizona; (3) the construction of a Data Center; (4) the expansion and renovation of Torrington Community Hospital in Torrington, Wyoming; and (5) the build out of one floor at Banner Estrella Medical Center.

The anticipated structure is a mixture of various series of traditional fixed rate bonds and indexed floaters with a final maturity of 30 years. The applicant plans to synthetically fix the interest rate on the indexed bonds with one or more variable to fixed interest rate swaps. Banner Health is rated AA- by S&P and Fitch. There will be no credit enhancement

Institution Type:
Hospital

Bond Issue Date:
5/1/2007

Amount Financed:
100 Million +

Interest Rate:
Variable

Bond Denomination:
5,000

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