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NOTICE OF PUBLIC HEARING ON A PROPOSED ISSUE OF HEALTH CARE FACILITIES REVENUE BONDS MONTANA FACILITY FINANCE AUTHORITY

Bozeman Health

Wednesday, June 2, 2021/Categories: Public Hearings

NOTICE OF PUBLIC HEARING

ON A PROPOSED ISSUE OF
HEALTH CARE FACILITIES REVENUE BONDS

MONTANA FACILITY FINANCE AUTHORITY

NOTICE IS HEREBY GIVEN that, on June 10, 2021 at 10:30 a.m., in the offices of the Authority at 2401 Colonial Drive, Third Floor, Helena, Montana 59620, the Executive Director of the Montana Facility Finance Authority (the “Authority”) or his designee will hold a public hearing pursuant to the requirements of Section 147(f) of the Internal Revenue Code of 1986, as amended, on a proposal that the Authority issue its health care facilities revenue bonds, in one or more series (the “Series 2021 Bonds”), under Montana Code Annotated, Title 90, Chapter 7, Parts 1, 2 and 3, as amended.  The maximum aggregate principal amount of Series 2021 Bonds to be issued on a tax-exempt basis is estimated to be $65,000,000.

The proceeds of the Series 2021 Bonds will be loaned by the Authority to Bozeman Deaconess Health Services, a Montana nonprofit corporation doing business as Bozeman Health (the “Borrower”).  The Borrower owns and operates certain hospital and health care facilities, including (i) through its wholly owned subsidiary Bozeman Health Deaconess Hospital, a Montana nonprofit corporation (“Bozeman Health”), an acute care hospital (the “Hospital”) and related health care facilities located at 915 Highland Boulevard in Bozeman, Montana (the “Hospital Campus”) and (ii) through its wholly owned subsidiary Bozeman Health Big Sky Medical Center, LLC, a Montana limited liability company, an acute care hospital facility located at 33 Lone Peak Drive in Big Sky, Montana (the “Big Sky Medical Center”).  The Borrower will use proceeds of the Series 2021 Bonds as follows: 

  1. in the maximum principal amount of $25,750,000, to finance or reimburse the Borrower for all or a portion of the costs of (i) construction and equipping of the fourth floor of an existing medical office building, (ii) remodeling of and improvements to other existing facilities and (iii) acquisition of capital equipment, all on the Hospital Campus;
  2. in the maximum principal amount of $4,600,000, to finance or reimburse the Borrower for all or a portion of the costs of construction and equipping of a new urgent care and primary care facility and related improvements, including a public road to access the facility, to be located at 1 Simmental Way, Bozeman, Montana 59715, which will be owned and operated by BH Urgent Care LLC, a wholly-owned subsidiary of the Borrower;
  3. in the maximum principal amount of $4,300,000, to finance or reimburse the Borrower for all or a portion of the costs of construction and equipping of a new urgent care and primary care facility and related improvements, to be located at 206 Alaska Frontage Road, Belgrade, Montana 59714, which will be owned and operated by the Borrower and/or BH Urgent Care LLC, a wholly-owned subsidiary of the Borrower;
  4. to refund the Authority’s Health Facilities Revenue Bonds (Bozeman Deaconess Health Services Obligated Group), Series 2011, outstanding in the aggregate principal amount of $12,240,000, of which (i) $11,455,600 was used to finance the construction of certain improvements and the acquisition of certain assets and equipment all located on the Hospital Campus and (ii) $784,400 was used to acquire a condominium unit located at 1600 Ellis Street, Bozeman, Montana 59715, which is owned and operated by the Borrower;
  5. to refund the Health Facilities Revenue Note (Bozeman Deaconess Health Services Obligated Group), Series 2015A, outstanding in the aggregate principal amount of $19,766,782.60, of which (i) $5,660,487.74 was used to construct and equip the Big Sky Medical Center and (ii) $14,106,294.86 was used to construct a five-story medical office building on the Hospital Campus; and
  6. to pay expenses incurred in connection with the issuance of the Series 2021 Bonds and the refunding. 

If the Series 2021 Bonds are issued and the proceeds thereof loaned to the Borrower as proposed, the Borrower will agree to repay the loan at times and in amounts sufficient to provide for the prompt payment of the principal of, premium, if any, and interest on the Series 2021 Bonds when due.  The Series 2021 Bonds will be payable from and secured by a pledge of the loan repayments from the Borrower.  The Series 2021 Bonds may also (but need not) be secured by additional collateral as may be provided by the Borrower.

The Series 2021 Bonds shall not constitute or give rise to a debt of the State of Montana, and neither the faith and credit nor the taxing power of the State of Montana is pledged to the payment of the principal of or the interest on the Series 2021 Bonds.

The Authority makes reasonable accommodations for any known disability that may interfere with a person’s ability to participate in public meetings.  Persons needing an accommodation must notify the Authority by telephone at (406) 444-0259 or writing at P.O. Box 200506, Helena, Montana 59620, no later than three days prior to the hearing to allow adequate time to make needed arrangements.

Dated:  June 2, 2021.

MONTANA FACILITY FINANCE AUTHORITY

 

By:  Adam Gill, Executive Director

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MONTANA FACILITY FINANCE AUTHORITY | MONTANA DEPARTMENT OF COMMERCE
2401 COLONIAL DR. 3rd Floor | PO BOX 200506 | HELENA, MT 59620-0506 | P: (406) 444-0259 | F: (406) 444-0019 | TDD: (406) 841-2702

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