Hospital Refinances its ’04 bond’
Kaweah Delta Health Care District refinanced its 2004 general obligation bonds on Thursday, Jan. 30, saving District property owners approximately $6.3 million over the next 20 years.
The move followed unanimous support of a resolution approved by the Kaweah Delta Health Care District Board of Directors during its Jan. 6 board meeting. By leveraging Kaweah Delta’s solid credit rating and taking advantage of low interest rates, property owners within the district will benefit from a reduction of approximately $303,000 annually through 2034.
Kaweah Delta issued and sold the refinancing bonds to Compass Mortgage Company and WAB Investments, Inc., a wholly-owned subsidiary of Western Alliance Bank, at an average rate of 4 percent.
The $51 million general obligation bonds stem from the 2003 passage of Measure M, which helped Kaweah Delta raise the $143 million needed to build the Acequia Wing. The 220,000-square-foot, six-story tower Acequia Wing, was completed on time and on budget in 2009 It increased and improved Kaweah Delta’s delivery of three key acute care services – cardiac, emergency, and maternity care – and added 87 beds to the district’s downtown medical center. The tower houses an expanded emergency department and trauma center, an expanded area for newborns and new moms to receive care, a new cardiovascular intensive care unit, and a state-of-the-art facility to provide cardiac and vascular surgery for patients.
Local residents voted in favor of the bond that is now being repaid through property tax assessments.