Texas's Tarrant County to Issue $295M of Bonds for Healthcare System

Dow Jones01-24 02:05

By Zaeem Shoaib

Texas' Tarrant County Cultural Education Facilities Finance Corp. plans to issue $295 million of bonds to finance certain projects for the healthcare facilities of Baylor Scott & White Health, the largest not-for-profit healthcare system in Texas.

The issuance consists of $149.1 million of Series 2026F hospital revenue bonds and $145.9 million of Series 2026G hospital revenue bonds, according to documents posted Thursday on MuniOS.

The corporation provides, expands and improves health facilities for bettering the adequacy, cost and accessibility of healthcare, research and education in the state.

Interest rates and maturity dates for the bonds were not disclosed. The interest on the bonds will be payable semiannually on each May 15 and Nov. 15. The bonds are expected to be delivered by Feb. 19.

Proceeds from the issuance will be used to pay, refinance or reimburse a portion of the costs of the construction, expansion, renovation and replacement of, additions to, or the acquisition of sites, buildings and capital equipment for the healthcare system's facilities.

The system operates 53 hospitals, more than 30 ambulatory surgery centers and more than 60 urgent-care clinics, supported by a total of more than 1,300 care sites statewide. For the year ended June 30, 2025, the system recorded a total operating revenue of $17.33 billion.

Baylor Scott & White Health's capital commitments for 2026, combined with existing commitments, are expected to generate about $2.4 billion in capital spending over the next five fiscal years, from 2026 to 2030, according to the documents.

The capital commitments focus on growth and expansion in the Dallas Fort-Worth and greater Austin markets, routine replacement and maintenance projects, and ongoing significant modernization projects in the Dallas-Fort Worth and Central Texas markets. Growth projects include major hospital bed/acute expansions and ambulatory and other investments.

Moody's has assigned a rating of Aa2 and S&P Global Ratings has assigned a rating of AA- to the bonds.

J.P. Morgan and Barclays are serving as lead managers on the issuance.

Write to Zaeem Shoaib at zaeem.shoaib@wsj.com

(END) Dow Jones Newswires

January 23, 2026 13:05 ET (18:05 GMT)

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Texas's Tarrant County to Issue $295M of Bonds for Healthcare System

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