PPH Delay Bond Issuance

PPH has delayed issuance of its revenue bond offering, orginally scheduled for July and then October, until December 2006. The reasons given were a need to refinance prior bonds, and spend-down requirements for using the bond proceeds.

IRS rules allow limited arbitrage using bond proceeds. A summary is available at:
http://www.prestongates.com/
publications/pubDetail.asp?id=306

PPH claims it will start construction of its new PMC West hospital in the ERTC in January 2008. That is only 13 months after the new projected date of the bonds. Since PPH is delaying the revenue bond offering, one can speculate that the new hospital start date has slipped at least 5 months.