Reported 4 months ago
Struggling Pennsylvania hospital chain Tower Health is planning to exchange almost $1 billion in existing debt for new funds as part of its financial turnaround efforts. The system aims to secure additional liquidity by exchanging existing bonds, supported by a $142.5 million new municipal bond sale for working capital. Tower Health expects to return to profitability this fiscal year after experiencing improvements in operating income and patient volume, following challenges exacerbated by the pandemic and a failed 2017 merger. The debt swap will provide the system with a longer-term financial strategy without haircutting current debt holders.
Source: YAHOO