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August 4, 2020

YNHH issues $400M bond offering

PHOTO | File image Yale New Haven Hospital.
By Michelle Tuccitto Sullo

Yale New Haven Health Services Corp. issued a $400 million taxable bond offering this past week. 

The corporation includes not only Yale New Haven Hospital but Bridgeport and Greenwich Hospitals, Lawrence+Memorial Hospital in New London and Westerly (R.I.) Hospital.

Proceeds from the bonds will be used toward financing the cost of projects and operations.

Health care facilities throughout the health system and the state in general have experienced negative financial consequences due to the ongoing coronavirus pandemic. 

The Series 2020 taxable bonds, dated as of Aug. 1, are being issued pursuant to a bond indenture. The U.S. Bank National Association will serve as trustee.

Interest on the bonds will be payable annually on the first of January and July, starting on Jan. 1, 2021. Denominations start at $1,000.

The bonds are rated AA- by Fitch, Aa3 by Moody’s, and AA- by Standard & Poors, according to the offering statement.

Hospital officials have previously indicated how they had to incur expenses to accommodate COVID-19 patients, and how many non-COVID patients delayed treatment in an effort to avoid exposure. 

Due to the virus, certain elective surgeries and procedures were temporarily discontinued, negatively impacting patient volumes and revenues. While surgeries and procedures have resumed, hospitals have reported that patient levels still haven’t returned to pre-COVID levels.

The system currently expects to incur a net loss of approximately $52 million for the year ending Sept. 30, 2020, according to the statement. It reported an unaudited net loss from operations of approximately $70.6 million for the fiscal year to date through May 31. In contrast, it had a net gain from operations of $129.1 million for the same period last year.

Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.

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