Pittsburgh, PA (March 23, 2006) — Banner Health, one of the largest, non-profit healthcare systems in the U.S., utilized Grant Street Group’s Internet auction platform to take competitive bids for the fixed rate component of an interest rate swap.
Three financial institutions participated in the open auction in which 61 bids were submitted. At the conclusion of the auction, Merrill Lynch had the first-place bid and was awarded 60% of the $425 million swap. Morgan Stanley, who agreed to match Merrill’s bid, was awarded 40%.
Michael McAnder, Vice President of Managed Care and Treasurer, said he was extremely pleased with the results. “I see great value in inviting firms to compete in an open auction. By utilizing Grant Street’s process, I believe we attained the best possible rate.”
KaufmanHall, a consulting practice specializing in the healthcare field, served as swap advisor to Banner Health.