Owner of midstate hospitals to refinance $2.7B
Health Management Associates Inc., the parent company of three midstate hospitals, plans to refinance debt with $2.7 billion in loans, the company announced Tuesday.
Based in Florida, Health Management owns Carlisle Regional Medical Center in South Middleton Township, Cumberland County; Lancaster Regional Medical Center in Lancaster; and Heart of Lancaster Regional Medical Center in Warwick Township, Lancaster County.
The loans the company is seeking include $500 million in a revolving credit facility, and $2.2 billion in term loans. It also seeks to issue up to $1 billion in senior unsecured notes, according to a news release. The credit facility and a $1 billion term loan would be due in 2016 and a $1.2 billion term loan would be due in 2018. The senior unsecured notes would be due in 2019.
Health Management plans to use the loans to repay some of its outstanding debt and other corporate purposes, the company said.
Standard & Poor's Financial Services assigned a BB- rating to the term and revolving credit loans, citing its expectations that Health Management's financial risk profile will remain reasonably stable. The company will face pressure from acquisition activity and possible federal health care reimbursement cuts, which might cause the businesses earnings margin to weaken slightly, S&P said.
S&P confirmed its continued corporate credit rating of the company at B+.