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 9:00 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 is estimated to be $75,000,000.
The proceeds of the Series 2021 Bonds will be loaned by the Authority to Kalispell Regional Medical Center, Inc., a Montana nonprofit corporation doing business as Logan Health (the “Borrower”). The Borrower owns and operates certain hospital and health care facilities on an approximately 18-acre campus located at 310 Sunnyview Lane in Kalispell, Montana (the “Facilities”) and other hospital and health care facilities. Proceeds of the Series 2021 Bonds will be used:
- to refund the Authority’s Health Care Facilities Revenue Bonds (Kalispell Regional Medical Center Obligated Group), Series 2010, outstanding in the aggregate principal amount of $40,265,000, the proceeds of which were used to finance the acquisition, construction, installation, equipping and furnishing of certain improvements to the Facilities, consisting generally of the construction of a surgical services tower containing approximately 76,000 square feet and remodeling other space in the Facilities;
- to refinance a loan of Northwest Horizons, Inc., a Montana non-profit corporation and an affiliate of the Borrower (“Northwest Horizons”), outstanding in the aggregate principal amount of $29,993,773.82, which loan originally financed the acquisition by Northwest Horizons of equity ownership in HealthCenter Northwest, LLC, an acute care hospital comprising part of the Facilities (the “Refinancing”) and that is now owned and operated by the Borrower;
- to make deposits to debt service reserve funds for the Series 2021 Bonds, if required; and
(d) to pay expenses incurred in connection with the issuance of the Series 2021 Bonds, the refunding and the refinancing.
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