Includes $30 million each in credit, financing
GREENBRAE -- Marin Healthcare District today announced that it has selected Union Bank to provide $60 million in credit and financing facilities for Marin General Hospital as the district seeks to retake control of the hospital in June from Sutter Health System.
Union Bank, which purchased Tamalpais Bank deposits April 16, will provide a $30 million line of credit secured by accounts payable as well as an additional $30 million term loan.
“The district is pleased to accept Union Bank’s proposal,” district Chief Executive Officer Lee Domanico said in a statement. “We view this as a significant indication of support for Marin General Hospital and our community.”
The district said it received favorable interest rates for the credit, at approximately 3.25 percent and 4.25 percent, respectively.
Mr. Domanico said the district received eight proposals and found Union’s to be “superior.”
“This is another important step in the transition process,” Mr. Domanico said.
The funding comes amid a protracted, often tense process for the district to retake control of the community hospital from Sutter Health.
The credit facilities are subject to negotiation of the final documents, according to the statement, and will be in place before the transfer of the hospital back to district control on June 29. They are to be funded immediately post-transfer.