MUHC sells bonds to raise cash for new hospital
MONTREAL – McGill University Health
Centre has sold C$764 million of bonds maturing in 2044 to help fund the
construction of its new hospital, a facility that will consolidate most
of its current sites at one new centre.
Scotia Capital was lead manager for the private placement of 6.632
percent bonds. Repayment of the principal is spread over the 34
It’s Quebec’s largest private financing in the healthcare sector, and it
may signal further bond floats are in store by public-private
partnerships, in which governments join with companies to build and
finance infrastructure projects. The Canadian Council for Public-Private
Partnerships lists at least 25 federal and provincial infrastructure
projects in the proposal stage.
Groupe immoblier santé McGill S.E.N.C. will design, build and maintain
McGill’s Glen Campus project and through its subsidiary SNC-Lavalin
Innisfree McGill Finance Inc., will handle financing. The debt is rated
A (low) with a stable outlook by DBRS Ltd., the company’s
seventh-highest rating. The Montreal-based hospital is responsible for
payments to the project owner.
Quebec will cover capital costs, or about 68 percent of the monthly
service payments over the life of the project, through a direct grant to
the owner, according to a DBRS report.
The 500-bed hospital will combine five existing hospitals on a new site
about five kilometers west of downtown Montreal and includes four
buildings with 20 operating rooms, pediatric and adult in-care
facilities, a cancer center and the Montreal Chest Institute.
Construction is slated to begin this month and run through September
Posted July 15, 2010