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RESOLUTION R-1617-31: A RESOLUTION APPROVING AND AUTHORIZING THE NORMAN REGIONAL HOSPITAL AUTHORITY TO REFUND ALL OUTSTANDING SERIES HOSPITAL REVENUE BONDS (THE "REFUNDED BONDS") TO BE ACCOMPLISHED BY THE ISSUANCE OF BONDS, NOTES OR OTHER EVIDENCES OF INDEBTEDNESS, ON A TAX-EXEMPT OR TAXABLE BASIS, AT A PREMIUM OR DISCOUNT, IN THE AGGREGATE PRINCIPAL AMOUNT OF NOT TO EXCEED TWO HUNDRED MILLION DOLLARS ($200,000,000) TO PROVIDE FUNDS NECESSARY TO REDEEM ALL OUTSTANDING SERIES BONDS AND PAY THE COSTS OF ISSUANCE; APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION THEREWITH; AND WAIVING COMPETITIVE BIDDING PURSUANT TO 60 O.S. SECTION 176(F).
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BACKGROUND: Norman Regional Health Systems (NRHS) is a public trust operated under the authority of the Oklahoma Public Trust statutes (60 O.S. ?176 et seq.). The City of Norman is the beneficiary of the public trust. As a beneficiary of the public trust, the Norman City Council is required to consider and approve of debt issuances of the public trust. The NRHS Board has moved forward to refinance and refund all prior debt issuances. This item is being brought forward seeking City Council concurrence with the anticipated action of the NRHS Board.
DISCUSSION: Included with the Agenda packet is a memorandum from Grant Ostlund of Ponder and Co. (financial advisors) to Ken Hopkins, Chief Financial Officer of Norman Regional Health Systems, that details the transaction and the attendant savings to the NRHS that will come from this refunding and refinancing. To summarize the main points, the proposal is to refund (refinance) the entire NRHS debt portfolio which totals $190,500,000. No additional debt is being incurred for new projects.
In November of 2015, after several years of continued financial improvement and with the completion of the Moore replacement facility on the near-term horizon, Moody's Investors Service upgraded NRHS to "Baa2" (stable). In June of 2016, Standard a...
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