NEW YORK--(BUSINESS WIRE)--Wells Fargo Securities, the investment banking and capital markets business of Wells Fargo (NYSE: WFC), is serving as senior managing underwriter on Maine Municipal Bond Bank’s issuance of $220,370,000 Federally Taxable Liquor Operation Revenue Bonds Series 2013.
“In many of these communities, the hospital is the largest employer and these proceeds will have a positive effect on the local communities.”
The Maine Municipal Bond Bank (the “Bank”) was created in 1971 by the Maine State Legislature. The agency has a history of providing Maine’s cities, towns, school systems, water and sewer districts, and other governmental entities access to low cost capital funds through the sale of its bonds. Established as an independent agency, the Bank is administered by a board of commissioners appointed by the governor.
The offered bonds are being issued to carry out a statutory plan of finance specifically authorized by Governor LePage’s initiative to pay monies owed to the state’s not-for-profit hospitals for MaineCare. The offered bonds are being issued by Maine Municipal Bond Bank pursuant to the Maine Municipal Bond Bank Act, being Chapter 225 of Title 30-A of the Maine Revised Statutes, as amended (the “Bond Bank Act”), including without limitation subchapter 5 of the Bond Bank Act, which was enacted by Public Laws of Maine 2013, Chapter 269, effective June 14, 2013 (the “Program Act”).
The Program Act authorizes the Bank to issue the offered bonds to finance the amount of $183,500,000 for the purpose of making payments to health care providers for services provided prior to December 1, 2012 under the MaineCare program established by 22 MRSA §3172 and following, to pay the costs of issuance of the offered bonds, to fund capitalized interest and to fund the Capital Reserve Fund. Upon the receipt of the proceeds from the sale of the offered bonds, the amount of $183,500,000 will be deposited in accordance with the Program Act directly into the Health Care Liability Retirement Fund established in 22-A MRSA §216 and the balance thereof will be applied to pay capitalized interest through December 1, 2014, fund the Capital Reserve Fund and pay costs of issuance of the offered bonds. Payment of these amounts prior to September 30, 2013 will entitle the state to receive federal matching funds in an amount equal to approximately $305,000,000.
The bonds are scheduled to price on Tuesday, August 27, 2013 with an expected settlement date of September 5, 2013. FirstSouthwest will be serving as Financial Advisor to the Bank. Bank of America Merrill Lynch is serving as co-senior manager with J.P. Morgan, Morgan Stanley and Raymond James as co-managers.
The 2013 Bonds will be sold with maturities ranging from 2015 to 2024.
“The proceeds from the bonds will be used to pay a long overdue debt to the hospitals, providing them with much needed capital infusions,” said Michael Goodwin, executive director of Maine Municipal Bond Bank. “In many of these communities, the hospital is the largest employer and these proceeds will have a positive effect on the local communities.”
Maine Municipal Bond Bank
Michael Goodwin, Executive Director
State of Maine
Sawin Millett, Jr., Commissioner – Department of Administrative & Financial Services
Gerry Reid, Director – Bureau of Alcoholic Beverages & Lottery Operations
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