2007 Financings
Financial Innovations Strenghten Non-Profits
As we begin our milestone 25th anniversary year of providing effective tax-exempt bond solutions for Montana healthcare and other qualified non-profit facilities, we are very pleased to report that 2007 was another excellent year. We issued $198 million in tax-exempt bonds and other loans to finance 15 projects throughout the state.
A selection of photos and captions of various 2007 fundings is available in PDF format.
The true measure of how much we have accomplished since inception is that in
this last year we completed over $1.5 billion in financings for projects benefiting
Montanans – all without using a single dollar in state tax funds. We rely solely on
fees generated by individual bond offerings and loans to fund our operation.
Highlights for 2007 include:
- Doubling our Statutory Issuance authority from $250 million to $500 million and making it effective immediately for the biennium ending June 30, 2007. This important and timely action by the Legislature allowed the Authority to finance $400 million to qualified non-profits.
- Adding more than $170 million in new construction and facilities improvement for Montana healthcare centers and other qualified non-profits.
- Providing Montana’s Critical Access Hospitals (CAH) that serve rural areas access to the capital market at very favorable rates – made possible by the cooperation of the Montana Board of Investments.
- Increasing assistance to underserved clients through the Trust Fund Loan Program. This program provides quick access to reasonable interest rates and rapid turnaround for Montana’s rural healthcare system including community clinics and developmental disability facilities.
On October 1, 2008, we will celebrate our 25th anniversary. Created in 1983 as the Montana Health Facility Authority, our name was changed to the Montana Facility Finance Authority in 2001 to reflect our growing diverse support role for qualified non-profits.
We thank our dedicated Board members and our highly professional staff and associates for their commitment to advancing the business of non-profits and their vital role in Montana. We pledge to continue pioneering innovative and successful financing solutions that will benefit all Montanans.
Direct Loan Program
Loans up to $200,000 for five years from Authority funds.Lewistown, Fergus County
- Central Montana Medical Center: $64,980 loan: replace ultrasound system. Interest Rate: 4.33%. Term: 5 years
Great Falls, Cascade County
- Gateway Community Services: $80,000 loan: additional remodel costs. Interest Rate: 6.28%. Term: 5 years
- Gateway Community Services: $13,300 loan: purchase computer equipment. Interest Rate: 4.36%. Term: 3 years
Townsend, Broadwater County
- Broadwater Health Center: $30,595 loan: purchase of colonoscope. Interest Rate: 4.66%. Term: 4 years
Equipment Revenue Note Program
Notes that are privately placed with investors.
Kalispell, Flathead County
- Kalispell Regional Medical Center: $3,250,000 loan: fund new modular 14-bed unit, renovate existing 10-bed unit. Interest Rate: 4.22% Term: 10 years. Pricing: 5/14/07
Missoula, Missoula County
- Community Medical Center: $1,000,000 loan: purchase of laboratory, radiology and operating room equipment. Interest Rate: 4.71%. Term: 5 years. Pricing: 05/15/07
Master Loan Program
Through the Montana Board of Investments, this program provides access to the tax-exempt capital market at investment grade interest rates for smaller hospitals.
Hamilton, Ravalli County
- Marcus Daly Memorial Hospital: $ 7,135,000: major expansion and enlargement of emergency room, parking facilities and utilities. Interest Rate: 4.79% Term: 20 years. Pricing: 01/18/07. Rating: Aa3/AA-
Ronan, Lake County
- St. Luke Community Health Care Network: $23.5 million in bonds: renovate existing and construct new hospital buildings. Interest Rate: 5.34%. Term: 25 years. Pricing: 6/13/07. Rating: Aa3/AA-
Wolf Point/Poplar, Roosevelt County
- Northeast Montana Health Services, Inc.: $12,515,000: major remodel of hospitals and clinics, purchase of new equipment. Interest Rate: 4.91%. Term: 25 years. Pricing: 4/19/07. Rating: Aa3/AA-
Montana Capital Assistance Program
Grants up to $15,000 with a 20% cash match to small rural hospitals. The following were approved:
Fort Benton, Choteau County
- Missouri River Medical Center: $14,800 grant: Facility Master Plan.
Harlowton, Wheatland County
- Wheatland Memorial Healthcare: $15,000 grant: Facility Master Plan.
Sheridan, Madison County
- Ruby Valley Hospital: $12,780 grant: Facility Master Plan.
Superior, Mineral County
- Mineral Community Hospital: $5,600 grant: Scope of Service Review.
Terry, Prairie County
- Prairie Community Health Center: $10,000 grant: Facility Master Plan/Capital Financing Plan.
Stand-Alone Bond Financing Program
Bond issue is structured for one borrower at a time.
Great Falls, Cascade County
- Benefis HealthCare System: $125 million: finance/reimburse, renovate, infrastructure improvements, equipment. Interest Rate: 4.90%. Term: 30 year. Pricing: 4/3/07. Rating: AAA/A-
Helena, Lewis and Clark County
- St. Peter's Hospital: $22,100,000 in bonds: construct medical office building and finish out floor of hospital's patient tower. Interest Rate: 4.69%. Term: 30 year. Pricing: 3/7/07. Rating: A3
Trust Fund Loan Program
Short- and long-term loans from the Permanent Coal Trust Fund.
Anaconda, Deer Lodge
- Community Hospital of Anaconda: $498,000 loan: equipment, new boiler. Interest Rate: 6.54%. Term: 5 years. Pricing: July 2007
Butte, Silver Bow
- BSW, Inc.: $1,000,000 loan: purchase property to consolidate client services. Interest Rate: 6.38%. Term: 10 years. Pricing: February 2007
Great Falls, Cascade County
- Gateway Community Services: $513,330 loan: purchase two medical condominiums. Interest Rate: 6.28%. Term: 20 years. Pricing: October 2006
Hamilton, Ravalli County
- Marcus Daly Memorial Hospital: $1,436,700 loan: purchase 64-slice CT scanner. Interest Rate: 6.21%. Term: 7 years. Pricing: June 2006
Interest Rates as of 12/28/2007
| Current | Three Months Ago | One Year Ago | |
Variable Rate
(tax-exempt, weekly reset) |
3.42% | 3.84% | 3.91% |
Bank Prime Rate |
7.25% | 7.75% | 8.25% |
5-Year Treasury Note |
3.62% | 4.22% | 4.68% |
10-Year Treasury Note |
4.20% | 4.57% | 4.68% |
25-Year Revenue Bond (tax-exempt, long-term) |
4.80% | 4.77% | 4.56% |
