Melio & Company advised The University of Chicago Medical Center on the issuance of $92.5 million of variable rate 2010 A&B bonds.
In November 2010, the Illinois Finance Authority issued $92,500,000 of the Series 2010A&B variable rate demand revenue bonds as a part of a two-phased bond issuance. By splitting the $185 million bond issuance in two, the University of Chicago realized significant savings in cost of issuance, interest, LOC fees, and negative arbitrage.
On behalf of the University of Chicago Medical Center, Melio & Company requested proposals for two $92.5 million LOCs to support the 2010 and 2011 bond issuances. Through a competitive bid process in 2010, Bank of America and Wells Fargo were each selected to provide $46.250 million LOC support for the Series 2010 A&B bond issuance.
The proceeds of the sale of the Series 2010 bonds will be used, together with certain other funds, to (i) pay or reimburse the Corporation for the costs of acquiring, constructing, renovating and equipping the New Hospital Pavilion, (ii) pay a portion of the interest on the Series 2010 Bonds, and (iii) pay certain expenses incurred in the connection with the issuance of the Series 2010 Bonds.