Illinois Finance Authority Approves City of Hope’s $650 Million Bond Refinancing for Cancer Treatment Centers Acquisition

The City of Hope, a California-based nonprofit, received approval from the Illinois Finance Authority to refund up to $650 million in bonds to refinance a taxable bridge loan used for the purchase of Cancer Treatment Centers of America facilities in Illinois, Arizona, and Georgia. This decision was part of $1.3 billion in conduit financings approved by the authority at its recent meeting.

The tax-exempt or taxable refunding bonds, with a maximum final maturity in 2063, will be placed with Bank of America, the same institution that purchased the 2022 bonds. The acquisition of the Cancer Treatment Centers led to City of Hope’s credit rating downgrades by S&P Global Ratings and Moody’s Investors Service due to increased leverage and lower reserves.

In addition to City of Hope’s financing, the Illinois authority also approved up to $250 million in bonds for The Carle Foundation’s acquisition of three UnityPoint Health hospitals and other assets. Carle, with underlying ratings of AA-minus from S&P and Fitch Ratings, plans to sell the debt directly to Bank of America.

Furthermore, up to $125 million in tax-exempt private activity bonds were approved for LRS Holdings to finance or refinance solid waste disposal facilities. These unrated bonds will be offered through J.P. Morgan Securities at a fixed interest rate, with the option to convert to daily or weekly interest rate periods.

The board also authorized the issuance of up to $250 million in bonds under the Property Assessed Clean Energy (PACE) program for new capital provider CleanFund, LLC. This program allows commercial property owners to finance energy efficiency, renewable energy, and water conservation projects through the issuance of PACE bonds.

Overall, these financing approvals by the Illinois Finance Authority signify significant investments in healthcare facilities, waste management, and clean energy initiatives in the state.