Indexed Put Bonds Attractive to Health Care Issuers

Walker, Susanne
February 2005
Bond Buyer;2/24/2005, Vol. 351 Issue 32077, p6
Trade Publication
The article reports that in recent months issuers in the health care sector have sold indexed put bonds as a way to obtain a floating interest rate security without the need for third-party credit enhancement, such as a letter of credit or insurance. Market participants note that the security is expected to grow in popularity among health care issuers this year Within the past five months, at least three health-care issuers have issued indexed put bonds. Earlier this month. Children's Healthcare of Atlanta sold $272 million in debt, of which about $72 million was indexed put revenue bonds. McLaren Health Care Corp., based in Flint, Michigan, on February 7, 2005 sold $100 million in indexed-put bonds.


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