Wall Street

Success on Wall Street

In the fall of 2013, Wall Street said, in effect, it likes NorthBay Healthcare.

Apprehension about diving into the bond market quickly evaporated when 15 well-known institutional buyers placed more than $97 million in orders for the $60 million in variable rate bonds in the offer. But what interest rate would NorthBay have to pay?

The $60 million will be used to retire about $20 million in existing debt with the remainder going to fund new construction projects.

The market priced the bonds at 2.19 percent, which is lower than anticipated. The result was $930,000 savings in annual interest expense, almost double what was expected.