The Spanish Society of Mutual Aid and Beneficence of Puerto Rico, owned by the hospital with the same name, is planning to issue approximately $35 million in bonds to purchase the HIMA San Pablo de Bayamón hospital, the repair of the facility, and for other purposes. This transaction was approved by the Fiscal Supervision Board (JSF) last week.
The upcoming debt issuance would be added to the $57.4 million in bonds issued by Auxilio Mutuo around 2021, with maturities extending until 2041. The purpose of the new bonds is to refinance existing debt, finance a capital improvement project, and be part of the asset disposal process that is part of the bankruptcy of the Turabo Medical Center.
According to reports from the institution, Auxilio Mutuo owes almost $67 million in bonds and its total assets are around $358 million. Three years ago, the investment bank JP Morgan was in charge of placing interest rates on the 2021 series of Auxilio Mutuo bonds. The new issue is expected to receive a BBB+ rating from Standard & Poor’s (SP) analysts.
The Caguas-based hospital complex’s offer of $18 million for the HIMA San Pablo hospital in Bayamón was accepted, and the transaction is pending approval by bankruptcy judge Enrique Lamoutte Inclán.
However, the hospital conglomerate has been unable to present its financial numbers to the investment community due to a security attack on its computer systems. As a result, Auxilio Mutuo has requested a 60-day extension to present its financial statements.
The issuance of corporate debt will be carried out through the Authority for the Financing of Industrial, Medical, Tourist, Educational, and Environmental Control Facilities (Afica), an entity under the government of Puerto Rico and under the custody of the Financial Advisory and Fiscal Agency Authority (Aafaf). This required the review of the body with power over the public finances of Puerto Rico.