Charlotte, N.C.-based Novant Health plans to issue more than $1 billion in bonds to finance its $5.3 billion acquisition of New Hanover Regional Medical Center in Wilmington, N.C.
The six bonds will fund most of the $1.5 billion upfront payment Novant has pledged for the medical center, according to The Winston-Salem Journal.
In addition to the upfront payment, Novant has committed to paying $50 million to the New Hanover Regional Medical Center Foundation and $3.1 billion to fund capital projects over the next decade.
“Novant Health anticipates funding any upfront cash payments with NHRMC with a combination of cash on hand and external financing,” the system told The Winston-Salem Journal. “We maintain excellent relationships with many global investment and commercial banks that are willing and ready to provide bridge financing for a transaction.”
The New Hanover County Commissioners voted Oct. 5 to approve Novant Health’s deal to buy the medical center and its assets. The deal still needs approval from the North Carolina Attorney General’s Office.
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