(Bangor, Maine) – Eastern Maine Medical Center is one step closer toward modernizing and expanding healthcare access for patients in northern, central, and eastern Maine. On Wednesday, EMMC’s parent company, EMHS, entered the capital markets by issuing $150 million in tax-exempt bonds which along with equity, represents Phase I of the EMMC Modernization Project and will be used to provide funds for the construction of a new seven story patient tower as well as outfitting of four of those floors. The Series 2013 Bonds were issued by the Maine Health and Higher Educational Facilities Authority (MHHEFA).
EMHS treasurer and chief financial officer Derrick Hollings was in New York today to oversee the offering on Wall Street. Pricing for the Series 2013 Bonds has now ended and we are pleased to share that this offering was highly successful. In addition to high demand from investment firms, retail orders accounted for $12 million from Maine investors. The Series 2013 Bonds carry a Moody’s rating of “Baa1” and a Standard & Poor’s rating of “BBB”; both have a stable outlook. The final all in interest rate is 4.45%, which exceeds original expectations. This coupled with a high demand for these bonds results in lower financing costs for EMMC.
“Today marks a very important milestone for the EMMC Modernization Project,” says Deborah Carey Johnson, RN, EMMC president and CEO. “This funding allows us to move forward with this very important work, which we know is crucial to ensuring access to healthcare in our region.” EMMC plays a critical regional healthcare role with thousands of Mainers relying on us every day for primary, specialty, and acute care. On any given day, about half of the inpatients at EMMC come from outside the primary service area.
EMMC's Modernization Project is focused on:
- Replacing all the OR suites in our Main Operating Room and adding three new ones
- Updating Women’s and Infants’ care space, including the Neonatal Intensive Care Unit
- Consolidating Cardiovascular diagnostic, non-invasive, and interventional services, bringing Heart Center services closer together
- Adding private patient rooms