Intermountain Healthcare received the approval of the Utah County Board of Commissioners on Tuesday morning to issue millions of dollars worth of bonds to help fund construction and improvements of healthcare facilities owned and operated by Intermountain.

Utah County will not be financially liable for the bonds, but as a nonprofit entity, Intermountain can only issue bonds at a tax-exempt rate if it goes through a local government entity such as Utah County.

"The county is the issuing entity, but all liability for the retainment of these bonds rests on the shoulders of Intermountain Healthcare," said Brad Patterson, attorney with Ballard Spahr LLP and acting legal counsel to the county for the transaction.

"We have reviewed the documents, and we have no reservations about recommending this transaction for you folks," Patterson told the commissioners.

The resolutions approved by the commission allow for Intermountain to issue a maximum of $420 million in fixed-rate bonds and $200 million in variable-rate bonds. But Intermountain only plans to issue bonds for a total of $530 million, said Dustin Matsumori, director of financial planning for Intermountain Healthcare. The excess was asked for in order to provide flexibility in what kinds of bonds Intermountain can issue, Matsumori said.

Utah County has previously approved Intermountain's issuance of bonds in 2002, 2012 and 2014, according to the statement. Serving in this capacity does not impact Utah County’s credit ratings or its ability to issue its own bonds in the future.

In addition to funding new projects, a portion of the bonds approved Tuesday will go toward restructuring and refinancing some of the existing bonds previously issued through Utah County, the statement said.

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