WHAT WILL MISSION HEALTH DO ABOUT ITS EXISTING BONDS OUTSTANDING? WILL THE BONDS THAT WERE ISSUED AT PREMIUM BE ESCROWED? I AM ALSO WONDERING IF MISSION IS CONSIDERING ALTERING THE PROVISIONS THAT ALLOW IT TO CALL BONDS AT PAR IF THERE IS A SALE. THESE NORTH CAROLINIANS LENT MONEY TO MISSION HEALTH IN GOOD FAITH. WILL THEY BE TAKEN CARE OF?

WHAT WILL MISSION HEALTH DO ABOUT ITS EXISTING BONDS OUTSTANDING? WILL THE BONDS THAT WERE ISSUED AT PREMIUM BE ESCROWED? I AM ALSO WONDERING IF MISSION IS CONSIDERING ALTERING THE PROVISIONS THAT ALLOW IT TO CALL BONDS AT PAR IF THERE IS A SALE. THESE NORTH CAROLINIANS LENT MONEY TO MISSION HEALTH IN GOOD FAITH. WILL THEY BE TAKEN CARE OF?

Mission Health will always handle its financial transactions, including its bond transactions, in good faith and in accordance with the obligations disclosed clearly to investors in the underlying documents for any bond.  Please see the Mission Health System voluntary disclosure that has been posted to the EMMA website maintained by the Municipal Securities Rulemaking Board.  https://missionhealthforward.org/EMMA-Notice-Mission-Redemption-Provision.pdf

In the event that the proposed transaction is consummated, Mission intends to pay, redeem or defease substantially all of its outstanding indebtedness at or prior to closing in accordance with the applicable documentation relating to such indebtedness.  The special call provisions for each such series of bonds were fully and clearly disclosed in the “Redemption Provisions” section of the respective final Official Statement for each such series of bonds. Please see Mission Health’s voluntary disclosure posted to the EMMA website maintained by the Municipal Securities Rulemaking Board for the language describing these special call provisions.

Since these call provisions were clearly and fully disclosed in the Preliminary Official Statements and Official Statements for each of the bond issues described above, Mission obviously assumes that:

  1.  Investors who purchased any of these bonds were fully aware of such call provisions; and
  2. The purchase price or yield at which such investors purchased these bonds (either at the initial offering of in the secondary market) reflected the known redemption risks relating to such call provisions (as well as the other optional and extraordinary optional call provisions described in the Official Statements relating to these bonds).

No definitive decision has yet been made by Mission as to how it will pay, redeem or defease its outstanding indebtedness upon consummation of the proposed transaction. Mission intends to post additional information regarding this matter when it determines that such disclosure is necessary or appropriate.