TAMPA, Fla. -- Fitch Ratings has assigned an 'AA' rating to Partners HealthCare System (Partners) 2007 series G bonds listed below and affirms the 'AA' rating on the $1.45 billion outstanding bonds. Fitch also affirms its 'F1+' rating on approximately $42 million of Partners HealthCare System's
--$75,000,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), FGIC-insured auction rate securities series G-1;
--$75,000,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), FSA-insured auction rate securities series G-2;
--$75,000,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), FGIC-insured auction rate securities series G-3;
--$75,000,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), FSA-insured auction rate securities series G-4;
--$100,000,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), index put bonds series G-5;
--$219,975,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), fixed-rate bonds series G-6;
--$80,000,000 Massachusetts Health and Educational Facilities Authority revenue bonds (Partners HealthCare System), enhanced index put bonds (privately placed through Citigroup).
The par amount of the G-5 and G-6 bonds is subject to change. Partners has not determined the allocation between the series G-5 and G-6 bonds at the time of this press release.
Bond proceeds will be used to fund $520 million in capital expenditures, including a portion of the purchase of the Charles River Plaza property ($100 million of which will be funded with the issuance of taxable bonds), refund certain outstanding bonds in the amount of approximately $140 million, fund the cost of insurance, fund a capitalized interest fund of approximately $26.4 million and pay cost of issuance on the bonds. The fixed-rate bonds will be priced the week of June 4th, and the variable-rate bonds will be priced the week of June 25 through negotiation led by JPMorgan and Bear, Stearns & Co, Inc.