Delaware County commissioners approve Franklin County bond issuance to benefit Nationwide Children's Hospital

The Delaware County Board of Commissioners on Nov. 3 approved a resolution consenting to a proposed Franklin County issuance of revenue bonds to finance and refinance hospital facilities for the benefit of Nationwide Children’s Hospital.

At a public hearing that began at 9:45 a.m., Ally Kimbler, bond counsel with Dinsmore & Shohl, said the bonds would be issued in two series — a fixed-rate series and a variable-rate series — with a maximum principal amount of $500,000,000. Kimbler said the proceeds would finance a new patient tower, a parking garage and an energy plant on Nationwide Children’s main campus and would also refund earlier bond issuances for debt-service savings. “These bonds are not debt or general obligations of the county,” Kimbler said, adding that the hospital alone is responsible for repayment under Ohio law.

Luke Brown, vice president of finance and treasury at Nationwide Children’s Hospital, said some prior bond series were related to construction of the medical-surgical campus across County Line Road in southern Delaware County and the ER and clinic facility on 123. “We appreciate being able to offer services closer to home for the families and children in Delaware County,” Brown said.

The resolution (25-918) the board read and voted on cites Chapter 140 of the Ohio Revised Code as the statutory authorization for county conduit issuances and notes the bonds would be issued to meet requirements of Internal Revenue Code Section 147(f) for tax-exempt private activity bonds. The board moved, seconded and recorded aye votes from Commissioner Gary Merrill and Vice President Jeff Benton; the motion passed.

The county acted as a conduit issuer; the county’s approval does not constitute a pledge of county credit or taxes, and the transcript records counsel’s repeated statement that repayment is the hospital’s obligation. Under the terms presented at the hearing, JPMorgan Chase Securities will underwrite the issuance with Loop Capital Markets as co-manager.

The hearing record closed at 9:49 a.m.; the board later read the resolution and voted on the approving motion.