Tower Health Swaps $992M in Debt, Secures Fresh Start with New Bond Issue
Tower Health’s Financial Turnaround: $992M Debt Swap and $142.5M Bond Issue Announced
Tower Health a struggling Pennsylvania hospital chain is taking a major step towards turning its financial fortunes around, according to the published article of Bloomberg. The system has announced plans to swap out its current debt of approximately $992 million in exchange for new debt and additional funds. The move which has been approved by the system’s trustee and bondholders aims to provide a fresh start for Tower Health as it looks to revamp its operations. As part of the deal the system will exchange “substantially all” of its existing bonds which will be replaced with new debt. This move is expected to help Tower Health reduce its debt burden and gain more flexibility in its financial planning.
Additionally, the system plans to issue $142.5 million in new municipal bonds which will be used to boost its working capital. This influx of cash will provide Tower Health with the resources it needs to invest in its hospitals, staff and patient care. The finalized agreement is expected to close in August, according to a spokesperson for Tower Health. The move is seen as a positive step towards the system’s turnaround which has been hindered by declining revenue and increasing expenses. By swapping out its debt and raising additional funds Tower Health hopes to improve its financial stability and position itself for long-term success.
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Tower Health Revamps Finances with $992M Debt Swap and $142.5M Investment in Hospitals and Patient Care
Furthermore, Tower Health a Pennsylvania hospital chain has announced a significant move to revamp its financial situation. The system plans to swap out its existing debt of approximately $992 million in exchange for new debt and additional funds. This move has been approved by the system’s trustee and bondholders and aims to provide a fresh start for Tower Health as it looks to revamp its operations. As part of the deal the system will exchange “substantially all” of its existing bonds which will be replaced with new debt. This is expected to help Tower Health reduce its debt burden and gain more flexibility in its financial planning. Additionally, the system plans to issue $142.5 million in new municipal bonds, which will be used to boost its working capital.