DEVELOPMENT AGENCY OKS HOSPITAL BONDS

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, January 30, 1992                   TAG: 9201300106
SECTION: BUSINESS                    PAGE: B-7   EDITION: METRO 
SOURCE: GEORGE KEGLEY BUSINESS EDITOR
DATELINE:                                 LENGTH: Short
DEVELOPMENT AGENCY OKS HOSPITAL BONDS
A $55 million bond issue for improvements and refinancing at Roanoke Memorial and Community hospitals and related hospitals in Bedford, Radford and Pearisburg was endorsed Wednesday by the Roanoke Industrial Development Authority.
Authority members were unanimous in their recommendation that Roanoke City Council approve the bonds. An inducement resolution for the bonds was approved by the authority last month.
About half of the bonds requested by Carilion Health Systems would be used to acquire equipment and renovate and refurbish its two Roanoke hospitals, as well as Bedford County Memorial, Radford Community and Giles Memorial hospitals, according to Robert Tonkinson, the company's assistant vice president.
The other half would refinance old bonds at a more favorable rate than when they were issued, he said.
The bond issue is expected to be handled under a master trust indenture and the hospitals would be liable for all obligations, said to Alton Knighton, an attorney for Carilion. The authority is asked to issue the bonds, backed by notes from the five hospitals, he said.
Knighton said the bonds initially will be backed by a letter of credit from Morgan Guaranty Trust.

by Archana Subramaniam by CNB