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League-Sponsored Bond Agency Issues $327.6 Million in Tax-Exempt Bonds for John Muir Health in Walnut Creek

June 28, 2016
Some of the most significant benefits of League membership for cities since 1988 have flowed from the League’s co-sponsorship of the California Statewide Communities Development Authority (CSCDA).
 
This program provides a variety of public agencies and developers access to low-cost, tax-exempt financing and economic development tools. CSCDA recently issued a total of issued $327,590,000 in tax-exempt bonds for John Muir Health in Walnut Creek.
 
About John Muir Health
 
John Muir Health, a nonprofit organization (John Muir), includes two of the largest medical centers in Contra Costa County: John Muir Medical Center, Walnut Creek, a 554-licensed bed medical center that serves as Contra Costa County's only designated trauma center; and John Muir Medical Center, Concord, a 245-licensed bed medical center in Concord. Together, they are recognized as pre-eminent centers for neurosciences, orthopedics, cancer care, cardiovascular care and high-risk obstetrics. John Muir Health also offers complete inpatient and outpatient behavioral health programs and services at its Behavioral Health Center, a fully accredited, 73-bed psychiatric hospital located in Concord. Other areas of specialty include general surgery, robotic surgery, weight-loss surgery, rehabilitation and critical care. In addition, John Muir Health provides a number of primary care and outpatient services throughout the community and urgent care centers in Brentwood, Concord, Pleasanton, San Ramon and Walnut Creek.
 
CSCDA partnered with Bank of America Merrill Lynch, Morgan Stanley, and Wells Fargo Securities to underwrite the $231,825,000 in Series 2016A bonds. The Series 2016A bonds were issued to refinance CSCDA’s existing Series 2006A bonds and to finance certain improvements to John Muir’s Walnut Creek and Concord campuses. In addition, $95,765,000 of Series 2016B and 2016C bonds were issued to refinance CSCDA’s existing Series 2008A and 2008C bonds. The refinancing of prior bonds resulted in a significantly reduced interest cost and more attractive terms for John Muir Health.
 
Background
 
CSCDA is a joint powers authority created in 1988 and is sponsored by the League of California Cities® and the California State Association of Counties. It was created by cities and counties for cities and counties. More than 500 cities, counties and special districts are program participants in CSCDA, which serves as their conduit issuer and provides access to efficiently finance locally-approved projects. CSCDA has issued more than $50 billion in tax exempt bonds for projects that provide a public benefit by creating jobs, affordable housing, healthcare, infrastructure, schools and other fundamental services. Visit CSCDA’s website for additional information on the ways in which CSCDA can help your city.


 
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