Genesis Releases Bonds

by Danielle Cotterman on July 11, 2011 at 5:49 am

Genesis Healthcare System moved to release bonds received in the past.

Chief Financial Officer of Genesis Healthcare System, Paul Masterson met with Muskingum County Commissioners Monday to request the release bonds of debt they had recently financed. The county was used as a conduit to issue the bonds in order for Genesis to achieve tax exempt rate. Masterson explains the county was not the borrower of the loans.

"An example is if you went and had your mortgage with one bank and went and remortage with another bank because you wanted a low interest rate or you wanted to refinance your house over a period of time," Masterson explained. "Then you would have to get the old bank to release all the paper works on the old loans, and that’s what we were really asking for was to clean up some paper work today for the transaction we needed a couple weeks ago."

The money borrowed went towards facility improvements in the past, including Good Samaritan Hospital, Bethesda Hospital and Genesis Healthcare System.

"The community benefit is it provides the hospital with lower debt service going forward," said Masterson. "Therefore producing more money to reinvest back into services and healthcare benefit for the community."

Two bonds were originally issued. The first for $6.35 million and the second for $3.65 million. Genesis was responsible for paying back the loans through National City Bank, which held the bonds.

Genesis Healthcare System moved to release bonds received in the past.