IHS 2024 TEFRA Public Hearing April 3, 2024

03 April 2024 - 11:00 AM

NOTICE OF PUBLIC HEARING

NOTICE IS HEREBY GIVEN that, for purposes of Section 147(f) of the Internal Revenue Code of 1986, as amended, the Infirmary Health System Special Care Facilities Financing Authority of Mobile, a public corporation organized under the laws of the State of Alabama (the “Authority") will hold a public hearing on behalf of the governing bodies of the City of Mobile, Alabama (the “City of Mobile"), Baldwin County, Alabama (“Baldwin County") and Mobile County, Alabama (“Mobile County") on Wednesday, April 3, 2024, at 11:00 a.m., accessible to the public by telephone, concerning a proposed plan of financing for the benefit of the Obligated Group described below.  The plan of financing will include the issuance by the Authority of its revenue bonds (the “Bonds") to provide financing for the benefit of Infirmary Health System, Inc., an Alabama nonprofit corporation (“IHS"), Mobile Infirmary Association, an Alabama nonprofit corporation (“MIA"), and Gulf Health Hospitals, Inc., an Alabama nonprofit corporation (“Gulf Health").  IHS, MIA and Gulf Health are the members of an Obligated Group (the “Obligated Group") under a master trust indenture and are responsible for the payment of the Bonds.  The members of the Obligated Group own and operate health care facilities in the City of Mobile, Mobile County and Baldwin County. 

The Bonds are being issued in one or more series, at one or more times, in an aggregate principal amount of up to $350,000,000 (the “Maximum Amount") as part of a plan to finance or refinance certain health care facilities of the Obligated Group.  The plan may include the financing of costs of issuance, capitalized interest or working capital, as applicable rules and regulations permit.  All series of Bonds to be issued under the plan of financing will be issued within three years after the issue date of the first issue.  The proceeds of the Bonds will be made available to IHS and the other members of the Obligated Group and used for the purposes described below. 

Proceeds of the Bonds will be used to refund all or a portion of certain outstanding indebtedness (the “Refunded Debt") issued for the benefit of the Obligated Group, including without limitation the Authority's Revenue Bonds (Infirmary Health System, Inc.), Series 2021B issued in the original principal amount of $20,000,000 and its Revenue Bonds (Infirmary Health System, Inc.), Series 2021C issued in the original principal amount of $50,000,000.  The Refunded Debt financed, refinanced or reimbursed costs of health care facilities operated by the Obligated Group at the locations listed below.   

The capital improvements to be financed or refinanced (collectively, the “Project") may include hospital facilities, medical office buildings, outpatient clinics, building additions or renovations, new or replacement equipment and other capital expenditures for the integrated health care delivery system of IHS.  All or portions of the Project may be located at any one or more of the following locations where IHS operates its health care delivery system:

(i)         the Mobile Infirmary Medical Center campus (including Infirmary LTAC Hospital located at the Mobile Infirmary campus), located at 5 Mobile Infirmary Circle, Mobile, Alabama;

(ii)        the Thomas Hospital campus, located at 750 Morphy Avenue, Fairhope, Alabama;

(iii)       the North Baldwin Infirmary campus, located at 1815 Hand Avenue, Bay Minette, Alabama;

(iv)       clinic facilities of the Obligated Group located at 7101 Highway 90, Daphne, Alabama;

(v)        clinic and free standing emergency department facilities of the Obligated Group at the Obligated Group's Saraland campus, located at 95 Shell Street, Saraland, Alabama; and

(vi)       clinic and free standing emergency department facilities of the Obligated Group at the Obligated Group's Malbis campus, located at 29487 State Highway 181, which is in unincorporated Baldwin County.        

Up to the entire Maximum Amount may be used for the Project at any one of these locations.

The facilities that comprise the Project are or will be owned and operated by IHS, MIA, Gulf Health, Infirmary Health Hospitals, Inc. and/or their subsidiaries and affiliates (each of which is a member of the Obligated Group or an affiliate of IHS).

The Bonds will be special or limited obligations of the Authority payable solely from payments by IHS pursuant to one or more loan agreements and corresponding notes, and payments by the Obligated Group pursuant to one or more master indenture obligations.  The Bonds will not be general obligations of the Authority and will not in any way constitute a debt, liability or obligation of the State of Alabama or any political subdivision of the State of Alabama, including without limitation, the City of Mobile, Baldwin County or Mobile County.  The Bonds will not be payable from any tax revenues.

All interested persons are invited to attend the public hearing by telephone and will be given an opportunity to address the question of whether the City of Mobile, Mobile County and Baldwin County should approve the plan of financing for the Project and the issuance of the Bonds by the Authority.  Individuals may attend the public hearing by telephone toll-free by dialing (855) 624-3476.  The conference code is 2052541986#.

This public hearing will provide an opportunity for all interested persons to express their views, both orally and in writing, with respect to the nature and location of the Project.  Written comments may be submitted to the Chairman of the Authority at 5 Mobile Infirmary Circle, Mobile, Alabama 36607, until March 29, 2024.  This notice is provided solely for the purposes of Section 147 of the Internal Revenue Code of 1986, as amended.