Metro Sells $135M Bonds

March 28, 2005
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GRAND RAPIDS — Metropolitan Health Corp. sold $135 million worth of fixed-rate bonds last week, revenue the provider will use to restart construction of its new 208-bed hospital in Wyoming

"These results are the best thing to happen to Metro since we received state permission to move. The market's response exceeded our expectations and will go down as one of the most important events in the history of this institution," said Mike Faas, Metro president and CEO.

"The people who bought our bonds did so because they believe their investor's funds are going to be part of a well-planned project that will be a successful and safe investment. It is another confirmation of our vision by numerous objective national authorities. That is very gratifying and just what we expected," added Faas.

Initially, Metro hoped to sell $100 million worth of the BBB-rated bonds. The sale will take about a month to close. UBS Financial Services was the underwriter.

Metro also plans to sell $30 million in variable-rate bonds a week before closing in a daily auction, securities that are being backed by a letter of credit from Standard Federal Bank.

Work on the new $165 million hospital is scheduled to get underway again in mid-April.    

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