Woman’s Hospital considers private financing for new campus

Woman’s Hospital halted construction of its new campus on Airline Highway and Pecue Lane a few months ago because of interest rates. Since then, CEO Teri Fontenot says hospital officials have been fine-tuning project designs and watching for a thawing credit market. The tax-exempt bond market—the hospital’s normal financing avenue—is “upside down,” with interest rates of 8% to 8.5%, Fontenot says. Instead of waiting for rates to go down, however, Woman’s has been considering alternative modes of financing. Fontenot says four or five firms have approached the hospital about privately financing the $350 million project. Two were rejected because they were offering a variable rate, and Woman’s is looking for a fixed-rate, 30-year deal. “We know there’s a lot of money that’s looking for a good place to invest,” Fontenot says. “We’re fortunate that we can be patient.”—Steve Clark