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Byline: The Register-Guard

PeaceHealth cleared to sell

bonds to finance new hospital

The Oregon Facilities Authority has approved PeaceHealth's request to raise $208.35 million by issuing tax-exempt bonds, which will provide a major source of financing for its plans to build a new $350 million hospital in Springfield.

Of that amount, $160 million will finance capital projects, mostly related to the planned new hospital at RiverBend, with the balance used for capital projects at PeaceHealth hospitals in Florence and Cottage Grove.

The balance, $48.35 million, will be used to refinance part of PeaceHealth's Western Lane 1994 Series bonds at a lower interest rate.

PeaceHealth plans to cover at least half of the expected $350 million construction cost of the new hospital from cash reserves. Private donations and tax-exempt bonds will cover the balance.

PeaceHealth's chief financial officer, Skip Kriz, said the new financing will lower the cost of hospital construction and thus the cost of health care for Lane County residents.

With tax-exempt bonds, the entities that lend PeaceHealth the money will receive interest payments from PeaceHealth that are exempt from taxation.
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Title Annotation:Business; NORTHWEST
Publication:The Register-Guard (Eugene, OR)
Date:Sep 23, 2004
Words:184
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