ProMedica is preparing a blockbuster $1.45 billion debt offering this autumn to continue hospital and facility expansion as well as repay a bridge loan from Barclays that partially financed the purchase of HCR ManorCare earlier this year.
Assuming it goes forward, the debt offering will be the largest in ProMedica’s history, according to The Toledo Blade.
ProMedica is one of the nation’s biggest integrated healthcare systems with 13 hospitals in two states, 900 physicians, a large health insurance arm and now — following the ManorCare acquisition — skilled nursing homes and senior-care operations in 30 states.
The biggest part of the upcoming debt offering is $1.15 billion to replace with permanent financing a one-year bridge loan owed to British investment banking giant Barclays, said ProMedica Chief Financial Officer Michael Browning.
That loan was instrumental in allowing ProMedica, along with Toledo-based Welltower, to buy HCR ManorCare for about $3.3 billion in July. ProMedica bought the operating business to diversify beyond hospital and healthcare operations into nursing homes and assisted living, while Welltower bought the buildings to lease back to ProMedica. Welltower is a real estate investment trust.
Read the full story at The Toledo Blade.