Mount Sinai Hospital Issues $200 Million Bonds for Capital Projects and Debt Refinancing

The Dormitory Authority of New York plans to issue $200 million in municipal bonds on behalf of Mount Sinai Hospital to finance various healthcare and supporting facilities. Proceeds will fund a new outpatient facility, renovations, equipment acquisition, and an electronic medical records system, as well as refund outstanding taxable debt and cover issuance costs. The bonds are rated Baa3 by Moody's and BBB by S&P Global Ratings, with Jefferies as the lead underwriter.

The Dormitory Authority of New York plans to issue $200 million in municipal bonds on behalf of Mount Sinai Hospital. The proceeds from the Series 2025 bonds will finance various healthcare and supporting facilities, including a new outpatient facility, renovations to existing facilities, acquisition of equipment, and implementation of an electronic medical records system. Additionally, the funds will be used to refund some of Mount Sinai Hospital's outstanding taxable debt and cover issuance costs [1].

Mount Sinai Hospital, which operates seven hospital campuses, a school of medicine, and has a large ambulatory footprint in the New York City area, will utilize the revenue collected from its operations to repay investors. The hospital reported total operating revenue of $4.69 billion in 2024. The bonds are rated Baa3 by Moody's and BBB by S&P Global Ratings, with Jefferies serving as the lead underwriter [1].

The bonds will be sold in fixed rate serial and term formats, with specific maturity dates and amounts yet to be determined. The Mount Sinai Health System, which includes St. Luke's-Roosevelt Hospital Center and South Nassau Communities Hospital, will benefit from the improved facilities and technology.

This issuance comes amidst a growing trend in municipal bond trading. According to Intercontinental Exchange (ICE), which operates the ICE Bonds platform, corporate bond trading reached a record notional volume of $212 billion in 2024, up 40% from the previous year. Municipal bond trading also saw a significant increase, reaching $178 billion in notional volume, up 5% from 2023. The growth can be attributed to the adoption of enhanced trading protocols and the expansion of liquidity networks [2].

References:

[1] https://www.marketscreener.com/news/latest/New-York-Authority-Selling-200-Million-of-Bonds-for-Mount-Sinai-Hospital-50492948/
[2] https://www.businesswire.com/news/home/20250218438130/en/ICE-Bonds-Sees-Record-Trading-for-Corporate-Municipal-and-Agency-Bonds-in-2024