Troubled Pennsylvania Hospital Chain Preps $1 Billion Debt Swap
- Proceeds of new debt sale will be used for working capital
- Tower Health expects to reach profitability this year
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Struggling Pennsylvania hospital chain Tower Health plans to exchange current debt and raise additional funds as it pursues a turnaround.
The system, trustee and bondholders of about $992 million in debt are supporting an exchange of “substantially all” existing bonds, according to a May 31 agreement that Tower Health disclosed in a filing Monday. The system also plans on selling $142.5 million of new municipal bonds for working capital. The finalized agreement will close in August, according to a spokesperson for Tower Health.