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EDA adopts resolution authorizing up to $365 million in revenue bonds for Centra Health
Summary
The Economic Development Authority voted to adopt a resolution authorizing revenue bonds not to exceed $365 million (plus amounts to refinance prior issues) to benefit Centra Health; presenters stressed the bonds are non‑recourse to the authority and repayment is Centra’s obligation.
The Economic Development Authority of the City of Lynchburg voted April 16 to adopt a resolution authorizing the issuance of revenue bonds for Centra Health in an amount not to exceed $365 million, plus amounts needed to refinance previously issued Centra bonds.
Pavina Margett introduced the resolution and counsel/finance staff described the proposed structure, saying the issuance would include both new‑money bonds and refunding of certain 2017 series. A presenter emphasized that "the bonds are non‑recourse to the authority. It's Centra's obligation to pay," and that the resolution requires bond documents to be in a form acceptable to the authority and contain customary indemnities and an administrative fee.
Board members asked whether the refinancing would target particular 2017 series; the presenter said they were likely considering two or three series and that market conditions and Centra's decisions would determine final timing. The board moved and adopted the resolution by voice vote.
The action does not change the authority's credit exposure, the presenter said, because repayment responsibility rests with Centra. No roll‑call vote totals were entered in the public record during the meeting; the motion carried on a voice vote.
The authority will execute related financing documents and return if further approvals or final forms are necessary.
