OMC takes on $20 million bond

PORT ANGELES — Olympic Medical Center commissioners unanimously decided to take on a $20 million bond during a recent meeting.

The loan will be used to pay a portion of OMC’s existing debt as well as be invested into the planned cancer center expansion in Sequim, surgical services upgrades and other improvements, said Darryl Wolfe, chief financial officer, during the board’s meeting Wednesday.

Some $8 million will go toward existing debt, with the other $12 million going toward the improvements.

The Sequim cancer center expansion, an 11,000-square-foot increase to the south, will include additional clinical exam space, a larger pharmacy, more infusion and chair space, and an education space that allows physicians and staff to explain the short- and long-term effects to patients.

The loan, which is through KeyBank, will have a fixed 3.04 percent interest rate for 10 years, Wolfe said.

OMC can pay up to $2 million per year without a penalty. During the first five years, paying any extra would result in a 2 percent penalty and the next two years would have a 1 percent penalty. The remaining three years are penalty-free, he said.

CEO Eric Lewis called the bond manageable and said it was a good time to lock in the interest rate.

“I don’t see [interest rates] getting much lower,” he said. “We’ve never gotten 3 percent on 10-year debt.”

Wolfe agreed.

“Debt is something we take seriously, and we want to make sure we have a good balance,” he said. “This is the right thing to do.”

After 10 years, OMC can renegotiate the terms of the loan, he said.

________

Reporter Jesse Major can be reached at 360-452-2345, ext. 56250, or at jmajor@peninsula dailynews.com.

More in News

Wind returns for Day 3 of Race to Alaska

Teams pushing north along Vancouver Island

Port Townsend pool on track to open in July

Task force favors Chimacum Park for replacement

‘Positive support’ shown for Recompete grant

Port of PA extends lease with Homeland Security

Jason Minnoch, left, and Jim deBord move a set of musical chimes as Al Oman and Jo Johnston look on during preparations on Wednesday for Sunday’s playground opening of the Dream Playground at Erickson Playfield in Port Angeles. The playground, rebuilt by volunteers in May after much of it was destroyed by arson in December, will host an official reopening and dedication ceremony at 3 p.m. Sunday. (Keith Thorpe/Peninsula Daily News)
Reopening ceremony Sunday

Jason Minnoch, left, and Jim deBord move a set of musical chimes… Continue reading

Port Townsend, YMCA sued over 2022 pool ban

Confrontation with transgender employee at center of lawsuit

More muscle than wind in Phase 2 of Race to Alaska

Winds die down, force sailors to alternate with human power

Chris Fidler.
Port Angeles man honored with Distinguished Alumni award

Chris Fidler of Port Angeles has received the Distinguished Alumni… Continue reading

Members of the Makah Tribe bring a gray whale to shore on May 18, 1999. A federal ruling Thursday will allow the tribe to take 25 whales in a 10-year period. (Peninsula Daily News file)
Makah Tribe granted waiver to hunt gray whales

Ruling to allow tribe 25 in 10-year period

Team Roscoe Pickle Train of Port Townsend, which includes Chris Iruz, Enzo Dougherty, Odin Smith and Pearl Smith, were first out of the Victoria Inner Harbour at the start of the Race to Alaska on Tuesday. The cannon fired at noon and 38 racers headed to Ketchikan, a 750-mile contest that started in Port Townsend on Sunday. (Steve Mullensky/for Peninsula Daily News)
Racers restart in Victoria on their way to Alaska

One rescued by Coast Guard; two others try wheeling over land

Sequim city council members approved a $2.45 million purchase of 16.52 acres off West Hendrickson Road to be used for a future park. It remains closed to the public as it’s being leased for agricultural use until plans and funding can be put in place for the future park. (Matthew Nash/Olympic Peninsula News Group)
Sequim purchases 16 acres for park

City negotiated with McCord family for 2 years

Clallam sheriff pursuing $9.6M grant for public safety facility

Defense program geared to supporting military installations