West Contra Costa Healthcare District to Issue $26 Million in Certificates Of Participation; S & P 'A' Rating Boosts Doctors Medical Center.

PINOLE, Calif. -- The West Contra Costa Healthcare District, which is poised to assume management of Doctors Medical Center in San Pablo and Pinole on August 1, today announced that it has received a Standard & Poor's 'A' rating and stable outlook in connection with the District's intent to issue $26 million in certificates of participation (COP) on July 27.

The COP offering, when combined with $15 million currently being sought in loans against assets, will give the District four months of working capital to allow it to facilitate a smooth transition from Tenet Healthcare.

"None of this would have occurred without the passage of Measure D ($52 annual parcel tax), which demonstrated to our lenders that we have 250,000 residents backing us and we are grateful to the community for their vote of confidence," said Irwin Hansen, District Hospital Transition CEO. "The A rating gives us several advantages: we will pay less interest for money that we borrow. The rating also ensures future borrowing capacity." In addition, Hansen said that the rating allows the COP to be insured, which could later raise the level of the 'A' rating to 'AAA'.

The COP offering, which is being underwritten by Cain Brothers, Edward P. Jones, Merrill Lynch & Co., Piper Jaffray and Westhoff, Cone & Holmsteadt is expected to be sold the week of July 12 and issued on or about July 27.

"We have made major progress in the transition's key areas of licensing and financing," Hansen said. "I'm optimistic about the future of Doctors Medical Center as West County's community hospital."

Doctors Medical Center has a 232-bed hospital in San Pablo with the largest ER in West County and an outpatient facility in Pinole.

For Information about the Certificates of Participation, contact Gary Hicks [phone].