By Ashley Barker
Published Jan. 13, 2014
The medical center of the Medical University of South Carolina refinanced its loans for the second time in slightly more than a year. The loans will save the hospital more than $70 million over the next 20 years, according a news release from MUSC.
Armadale Capital, a Federal Housing Administration mortgage lender, recently closed a $47 million loan for the Medical University Hospital Authority, the state agency that owns and operates MUSC’s hospital. Armadale had also provided a $361 million refinancing loan in December, the release said.
The first refinancing reduced the authority’s debt by $2.2 million and will allow the hospital to “continue to modernize its campus,” the release said.
The FHA loans are insured under the U.S. Department of Housing and Urban Development’s Hospital Mortgage Insurance Program and funded by Government National Mortgage Association securities.
“MUHA established and refined a focused plan of finance, and, fortunately, with a highly favorable interest rate environment, we were able to achieve savings levels far in excess of industry refinancing standards,” said Stephen Pack, president of Armadale Capital, in a statement released by MUSC.
Stephen Hargett, CFO of the Medical University Hospital Authority, said the transactions improve the hospital’s ability to provide health care to the community.
“This is a winner for MUHA, the state and federal government, and most importantly, the residents of South Carolina,” Hargett said in a statement. “As our capital and refinancing needs arise, the HUD mortgage insurance program has consistently been instrumental in providing access to cost-effective capital for our institution.”
Reach Ashley Barker at 843-849-3144 or @AshleyNBarker.