Melio & Company advised the Cleveland Clinic on the issuance of $105 million of Series 2013A Fixed and Indexed Rate Bonds
In May 2013, the State of Ohio issued $105,445,000 of the Series 2013A fixed and indexed rate bonds following an RFP process for fixed and indexed rate bonds. Through the RFP process that included eleven banks, the Cleveland Clinic was able to secure the lowest cost for indexed rate bonds while also securing a strong syndicate. The bonds were underwritten by J.P. Morgan, PNC Capital Markets, Wells Fargo Securities, US Bancorp, and BNY Mellon Capital Markets.
A portion of the proceeds of the Series 2013A Bonds will be used to fund an escrow which will provide for the refunding of the outstanding Series 2003A Bonds. The escrow fund will be established with The Huntington Bank, as Bond Trustee for the Series 2003A Bonds, and funded with cash and U.S. Government securities. The maturing principal amount of such securities, together with the interest that accrues thereon, and the cash on deposit in such fund will be used to redeem the outstanding Series 2003A Bonds on July 1, 2013 a redemption price of par plus accrued interest.
Another portion of the proceeds will be used, together with certain funds provided by the Obligated Issuers, to pay or reimburse the Obligated Issuers for the cost of acquisition, construction, reconstruction, renovation, equipping, furnishing, and improving of certain health facilities of the Obligated Issuers.