Orlando Health issues $315 million in bonds

ORLANDO, FL (April 14, 2016) – Orlando Health has announced its largest bond issue in the history of the organization. On Wednesday, April 13, 2016, approximately $240 million in tax-exempt bonds were issued by the Orange County Health Facilities Authority and approximately $75 million in taxable bonds were issued by the Orlando Health Obligated Group. The offering was oversubscribed generating $2.5 billion in orders. Funds raised from the issue will be used to refinance a portion of the organization’s existing debt, including debt taken on to purchase Health Central.

“This bond issue will reduce our borrowing costs and future debt service,” said Bernadette Spong, CFO, Orlando Health. “It will further strengthen our financial position and enable us to continue to adapt to the changing healthcare environment more efficiently.”

The bond issue follows a March 31 announcement that Moody’s Investment Services had upgraded the organization’s credit rating from A3 to A2 with a stable outlook. Moody’s cited Orlando Health’s second consecutive year of improved financial performance, increasing market share, and a material improvement in debt service as its reasons for the action. In early April, Fitch Ratings and Standard & Poor individually confirmed their A rating with a stable outlook for Orlando Health.

With the issuance of the tax-exempt bonds, Orlando Health is expected to reduce the present value of future debt service by over $33 million over the term of the bonds. The bonds are expected to close April 27, 2016.

About Orlando Health

Orlando Health is a $2.3 billion not-for-profit health care organization and a community-based network of physician practices, hospitals, and outpatient care centers throughout Central Florida. The organization is home to the area’s only Level One Trauma Centers for adults and pediatrics and is a statutory teaching hospital system that offers both specialty and community hospitals. More than 2,000 physicians have privileges at Orlando Health, which is also one of the area’s largest employers with more than 15,000 employees who serve nearly 2 million Central Florida residents and more than 4,500 international patients annually. Additionally, Orlando Health provides nearly $235 million in support of community health needs. More information can be found at www.orlandohealth.com.

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April 14, 2016