Bond Update #3

January 27, 2009

Bond Sales for New Hospital Going According to Plan – 3rd Issue Sold


On May 13th Valley County voters gave their approval to a $21.265 million dollar general obligation bond issue, proceeds to be applied toward the construction of a new hospital. Valley County Health System announced that on Wednesday, January 21, the third of several issuances realized $5.33 million dollars in bond sales. The sales rate for this issue was 4.86%, which is favorable to original estimates.

Marc Munford, Assistant Vice President with Ameritas Investment Corporation,
appeared before the Valley County Board of Supervisors on January 13 to announce the presale of the additional $5.33 million in bonds. The combined sales volume, with the $7.22 million sold in August and the $2.68 million sold in October, now totals $15,230,000. This issue was sold once again to Nebraska area banks and investors. The aggregate sales rate for all bonds sold is 5.07%, which is still positive to original estimates.

Conditions of the bond sale to build the new replacement hospital require that only a maximum of $10 million dollars can be sold each calendar year in order to stay bank qualified. The $6,035,000 balance of the bonds remaining to be issued will be marketed either partially in 2009 and 2010 or completely in 2010, depending on market conditions.