Healthcare

Featured Bond – Mount Sinai Obligated Group $475 million


Featured Bond – Mount Sinai Obligated Group $475 million ( Mount Sinai Hospital from 1920's postcard. Source: wikimedia )

The Mount Sinai Obligated Group is scheduled to issue $475 million in Taxable Bonds. The negotiated sale is scheduled for November 14th with Goldman Sachs and Citigroup as lead co-managers. This long dated fixed rate bond has an amortization schedule of 2020 – 2029.

About the Bonds

Proceeds of the Bonds will be used by the Hospital for eligible corporate purposes of the Hospital and its affiliates, and to refund certain existing indebtedness. The Bonds are secured by a pledge of gross receipts from the hospital. Interest on the Bonds generally will be taxable to a U.S. Holder as ordinary interest income at the time such amounts are accrued or received.

These Bonds are subject to redemption prior to their respective stated maturities, at the option of the Hospital, in whole or in part. An additional 3.8% tax may be imposed on the net investment income of certain individuals, trusts and estates. Moody’s has given this bond issuance a rating of A3, and S&P has rated the bond A-. Both ratings have stable outlooks.

Mount Sinai Hospital System

Mount Sinai was founded in 1852 dedicated to serving Manhattan’s Jewish community which was systematically prohibited from all but one other hospital in the city. Now the whole of Mount Sinai Hospital Group comprises 8 campus serving a large proportion of the greater New York metropolitan area and generating $8 billion in revenues.

One of the largest hospital campuses in the system is going through major a rebuilding project. Beth Israel in downtown Manhattan has served New Yorkers for 125 years, and is undergoing a major overhaul to make their services leaner and more responsive to expanded demand for emergency services.

These details and more on purposes, security, risks and other matters pertaining to these Bonds can the found in the official statement, provided by MuniOS. After registering, if needed, visitors can link directly to the official statement as well as an investor’s roadshow by searching for the ‘Mount Sinai Obligated Group’.

Below is a fiscal snapshot of Mount Sinai for FY 2018

Provided above is a quick snapshot of financial characteristics of the Mount Sinai Hospital along with the medians for all other stand alone hospitals, courtesy of Merritt Research Services, LLC. Merritt has many of the sector medians publicly available and regularly updated on their Benchmark Central  page. (Merritt believes the data to be reliable but does not make any representations as to its accuracy or completeness).

In addition to the Merritt information related to the featured bond, more information can be found on our municipal bond calendarcity, state, and county pages.

These facts and numbers are for informational purposes, and should not be considered an official disclosure for potential investors. Investors should consult the official statement. None of the information provided should be construed as a recommendation by MuniNet Guide, MuniNet LLC, Merritt Research Services LLC, or any of their employees. Information and analysis is for informational purposes only.

Potential investors should rely only on the official documents and figures provided in the official statement (prospectus).  Although the numbers presented in this summary are primarily derived from public documents, including issuer audits, issuer reports and other public sources such as federal reporting agencies ,  they are not intended to replace official information presented in connection with the bond sale. Medians may differ from official sales documents due to methodology or survey base variances.

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