UNM Hospital Bond Sale a "Triumph"
In what University of New Mexico officials are calling a "big win" for the Children's Hospital Expansion Project, $197 million in revenue bonds were successfully marketed on October 13.
Executive Vice President for Administration David Harris reports that, all costs included, the true interest cost achieved for the bond sale is 5.4 percent, which compares quite favorably to the 5.75-percent estimate approved by UNM Regents during their October 12 meeting.
President Louis Caldera is gratified with the outcome. "We are pleased to be able to market the bonds and achieve an interest rate well below estimates. This will be reflected in real savings on the hospital project," said Caldera.
An underwriting syndicate, including representatives from J.P. Morgan, RBC Dain Rauscher and George K. Baum & Sons, worked on the bond sale initiative that was overseen by Caldera, UNM Regents President Jamie Koch and Executive Vice President for Health Sciences R. Philip Eaton. The sale culminates more than two years of hard work by UNM staff.
Harris also reports $30 million in retail sales in just one week of selling the hospital bonds on a retail basis, which means that 16 percent of the total debt was sold through retail sales. He adds that of this $30 million, $8.5 million was purchased by UNM staff and alumni.
Caldera says this local support reflects the very strong commitment the UNM community holds for the hospital project.
"The Children's Hospital Expansion Project will greatly advance the cutting-edge teaching and research programs of UNM's Health Sciences Center," noted Caldera, "while increasing our capacity to provide the community with more quality health care."
Also on October 13, a formal notice to proceed was issued to the project's general contractors, Jaynes Companies of Albuquerque and J.E. Dunn Construction Company of Kansas City, MO. A formal groundbreaking is scheduled for mid-November.
The state's largest capital improvement project today, the UNM Children's Hospital Expansion Project will offer six new floors of clinical space. The facility will house New Mexico's only children's hospital, a new maternity center, an improved emergency department, New Mexico's only Level 1 trauma center, and an adult critical care center.
Contacts: Susan McKinsey, 277-1989; Jennifer Riordan, 272-0261