Toledo, OH-based ProMedica plans to use part of a $1.45 billion debt offering to repay a bridge loan that partially financed the transaction through which it acquired assisted living and skilled nursing operator HCR ManorCare with real estate investment trust Welltower in July, the Toledo Blade reports.
The largest debt offering in the health system’s history, if it occurs, also would fund continued hospital and facility expansion, the media outlet said, but $1.15 billion of the total would be used to replace a bridge loan from investment bank Barclays with permanent financing. The debt offering is expected to be made this fall.
The organization plans to sell taxable revenue bonds to investors to repay Barclays and tax-exempt bonds to fund the expansion projects, ProMedica Chief Financial Officer Michael Browning told the newspaper.
The addition of ManorCare to ProMedica made the health system the 15th largest in the country.In August, ProMedica announced that it was laying off approximately 100 people and would not fill 60 non-direct-care jobs that are vacant. The health system said that the layoffs would address pre-merger financial issues and that none of the eliminated positions were at ManorCare.
