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Lindley Estes is a business writer for The Free Lance-Star and Fredericksburg.com. This blog is on Fredericksburg-area business. Send an e-mail to Lindley Estes.

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Mary Washington Healthcare raising $30 million

Mary Washington Healthcare plans to sell $30 million worth of bonds by the end of July to buy land, pay for new buildings and purchase equipment at its Stafford and Mary Washington hospitals. The company started the process last year. The bonds will be sold through the Fredericksburg Economic Development Authority to give them tax-exempt status. BB&T will buy and hold all of the $30 million in bonds, said MWHC spokeswoman Debbie McInnis. The interest rate is variable and will be less than 4 percent at the time of issue.

MWHC will pay the Fredericksburg and Stafford EDAs an annual fee equaling one-tenth of 1 percent of the bond balance. MWHC estimates that about 80 percent of the money raised will be spent at the Mary Washington Hospital complex and the remainder at Stafford Hospital. The fees to the two EDAs will be proportionate to the amount spent in each locality. So Fredericksburg’s EDA stands to net about $24,000 in fees the first year, and Stafford’s about $6,000. That money will go toward other economic development projects. The Fredericksburg EDA will likely give final approval to the bond documents at its July 11 meeting.

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Permalink: http://news.fredericksburg.com/businessbrowser/2011/06/16/mary-washington-healthcare-raising-30-million/

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