Novant Health is planning to raise $1.9 billion through the municipal bond market next week, making it one of the largest healthcare transactions of the year. The North Carolina-based hospital system is seeking to borrow the funds to partially repay the bridge loans used for the acquisition of three hospitals in South Carolina earlier this year.
The acquisition, which totaled $2.4 billion, included the bridge loans that were used as temporary financing for the deal. This move comes as part of Novant Health’s efforts to expand its presence in the region and provide quality healthcare services to more patients.
Hospital borrowing in the municipal market took a hit last year due to rising labor and supply costs, which had weakened the finances of many healthcare facilities. However, this year, the sector has experienced a rebound, with more hospitals turning to the bond market to secure financing for expansion and other strategic initiatives.
One of the hospitals acquired by Novant Health in South Carolina was East Cooper Medical Center, which will now be part of the larger healthcare system. This move is expected to strengthen Novant Health’s position in the region and enhance its ability to provide comprehensive healthcare services to a wider population.