Kaiser Permanente To Issue $750 Million in Municipal Bonds
Oakland-based Kaiser Permanente, the nation's largest not-for-profit HMO, on Wednesday will offer $750 million in municipal bonds, Dow Jones/Wall Street Journal reports. The bonds will be issued through the California Statewide Communities Development Authority because using a public agency will allow the bonds to obtain tax-exempt status. The $750 million bond offering is the first in a series of 13 "relatively short-term," tax-exempt offerings totaling $1.6 billion that Kaiser plans to offer this week and next, Dow Jones/Journal reports. According to Dow Jones/Journal, proceeds from the bond offerings will be used for capital requirements and equipment acquisitions by the 8.2 million-member HMO. The bonds offered Wednesday will allow investors to sell the bonds back to the issuing authority in one, three, five or seven years. J.P. Morgan Securities is the lead book-runner for Wednesday's issuance (Rosenberg, Dow Jones/Wall Street Journal, 3/24).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.