(BHSHI; A/Stable) and Mercy Health (AA-/Stable) completed the combination of the two healthcare organizations and BSHSI changed its name to Bon Secours Mercy Health, Inc.
31, 2017 audited financial statements and the BSHSI Aug.
The Atlantic Division, which includes the legacy BSHSI hospitals, is heavily concentrated in three markets - the greater Richmond metro area and Hampton Roads in Virginia, and Greenville in South Carolina.
A pro forma combination of BSHSI and Mercy Health shows cash and unrestricted investments at $3.9 billion at Dec.
Fitch's base case assumes revenue growth at a relatively moderate rate of around 3.0% to 3.5%, which combines the slightly higher historical revenue growth of Mercy Health with the somewhat slower overall growth of BSHSI. Capital spending is assumed at about to 115% of depreciation expense over the next five years ranging from between approximately $480 million to $575 million.
The plan of finance includes: $110 million of BSHI series 2013B and series 2017 tax-exempt debt (which is currently directly placed with Bank of America Merrill Lynch and not rated by Fitch) will substitute existing BSHSI Master Obligation with Master Notes issued under the Mercy Health MTI.