NOTICE OF PUBLIC HEARING
HOSPITAL REVENUE AND REFUNDING OBLIGATIONS
The Fiscal Court of the County of Boyle, Kentucky (the “Issuer”) will hold a joint Public Hearing on behalf of (i) the Issuer, (ii) the County of Lincoln, Kentucky (“Lincoln”), and (iii) the County of Mercer, Kentucky (“Mercer” and, together with the Issuer, Lincoln, and Mercer, the “Host Counties”) on May 27, 2025 at 8:45 a.m. at the Boyle County Fiscal Courtroom, 321 West Main Street, Danville, Kentucky 40422, to discuss the possible issuance by the Issuer of its hospital revenue and revenue refunding obligations (the “Obligations”), in one or more series, at the same or different times, in connection with a plan of finance, and in an aggregate principal amount currently estimated not to exceed $130,000,000 under Sections 103.200 to 103.285, inclusive, of the Kentucky Revised Statutes.
If authorized, the Obligations will be qualified 501(c)(3) bonds as defined in Section 145 of the Internal Revenue Code of 1986, as amended (the “Code”). The proceeds of the Obligations will be loaned to Ephraim McDowell Health, Inc., a Kentucky nonprofit corporation (the “Borrower”) and used to: (i) finance the costs of the acquisition, construction, installation, and equipping of hospital facilities (the “New Money Project”); (ii) refund all or a portion of the outstanding County of Boyle, Kentucky, Hospital Refunding Revenue Bond, Series 2014A (Ephraim McDowell Health Obligated Group) (the “Series 2014A Bond”) and County of Boyle, Kentucky, Hospital Revenue Bond, Series 2014B (Ephraim McDowell Health Obligated Group) (the “Series 2014B Bond”) in advance of maturity; (iii) refinance a loan incurred with the United States Department of Agriculture to finance improvements to Ephraim McDowell James B. Haggin Hospital (the “Haggin Hospital Loan”); (iv) pay costs and fees related to the termination or modification of certain existing hedging transactions related to the foregoing; (v) fund reasonably required reserve and/or debt service funds; and (vi) pay costs of issuance of the Obligations. Capital improvements financed or refinanced by the 2014A Bond, the 2014B Bond, and the Haggin Hospital Loan are referred to herein as the “Refinanced Projects.”
$90,000,000 of Bond proceeds will be used to finance the New Money Project located at, adjacent to or contiguous with 217 South 3rd Street, Danville, Kentucky 40422. $37,000,000 of Bond proceeds will be used to refinance the 2014A Bond and 2014B Bond, which financed and refinanced hospital facilities located at, adjacent to or contiguous with 217 South 3rd Street, Danville, Kentucky 40422 and 110 Metker Trail, Stanford, Kentucky 40484. $3,000,000 of Bond proceeds will be used to refinance the Haggin Hospital Loan, which financed hospital facilities located at, adjacent to or contiguous with 464 Linden Avenue, Harrodsburg, Kentucky 40330. The Borrower, or a party related thereto, will own or principally use the New Money Project and the Refinanced Projects in an integrated operation.
The public hearing and this notice is intended to comply with the public approval requirements of Section 147(f) of the Code. The Obligations and the interest thereon will be special and limited obligations of the Issuer payable solely from the revenues pledged to the Obligations. The Obligations will not constitute an indebtedness or a charge against the general credit or taxing power of the Issuer, the Commonwealth, or any political subdivision thereof. The full faith and credit of the Issuer, the Commonwealth, or any political subdivision thereof will not be pledged to the payment of the principal of or interest on the Obligations.
Interested persons are invited to attend this public hearing and will be given an opportunity to express their views concerning the facilities and the proposed issuance of the Obligations during the hearing. Written comments may also be given by submitting them before the public hearing to the Issuer, on behalf of itself and the Host Counties, via Katina Wesley, hearing officer, by email at katina.wesley@boylecountyky.gov. All written comments must be received on or before the date and time of the hearing.
COUNTY OF BOYLE, KENTUCKY
/s/ Katina Wesley
By: Katina Wesley, Fiscal Court Clerk