ChristianaCare Considers Borrowing $355M For Capital Improvements
Delaware’s largest hospital system may borrow a hefty sum to support its capital plan as it expands its footprint in the region.
ChristianaCare, which also has a presence in the Philadelphia suburbs and Maryland, is considering raising $355M via tax-exempt bonds, the Philadelphia Business Journal reported, citing documents filed earlier this month.
The bonds are expected to come from the Delaware Health Facilities Authority, according to the filings. The money would cover or reimburse expenses stemming from undisclosed capital projects.
Bond pricing is expected to occur in mid-January before an issuance the following month. J.P. Morgan Securities is underwriting the borrowing, but other co-managers are expected to join. The size and timing of the issuance remains up in the air.
“This borrowing is included in our long-term financial plan, which is informed by our enterprise strategy,” a ChristianaCare spokesperson told Bisnow in a statement. “Details will be shared through the public financing process, with a tentative release planned for early January.”
In July, the system committed to spending $865M on construction and program expansions to increase access to care in Delaware.
ChristianaCare also has a presence in Maryland and the Philadelphia suburbs, and it has been growing its footprint in Delaware and Chester counties.
The health system spent $50M on a portfolio of Delco outpatient facilities vacated by Crozer Health during its bankruptcy proceedings, which began in April. It includes outposts in Broomall, Havertown, Glen Mills and Media.
ChristianaCare has also been building out a 10-bed hospital in nearby Aston, which is expected to open this summer. It already has a similar facility open at Jennersville, about 30 miles west in the heart of Chester County.
Crozer’s closure led to a major care gap in parts of Delco and real estate opportunities for other players.
A consortium of healthcare executives led by Todd Strine, majority owner of ambulance company Keystone Quality Transport, bought the former Taylor Hospital in Ridley Park for $1M in September. They hoped to open an emergency room there at the time.
Upper Darby School District purchased the former Delco Memorial Hospital for $600K the month prior.
