Hospital board approves USDA Rural Development loan
by Robert Joseph Baker | July 29, 2014 1:35 pm
Last Updated: July 29, 2014 at 1:36 pm
The Clarendon Health System board of trustees voted unanimously Tuesday afternoon during a special meeting on a loan agreement with U.S. Department of Agriculture’s Rural Development that would provide $2.99 million to help the hospital refinance existing debt.
Board attorney Margaret Pope said a $7.25 million Wells Fargo loan from 2011, with just less than $5.8 million outstanding, has “very, very onerous covenants,” terms she has been advising the board ned to be renegotiated. The hospital will issue $3 million in revenue bonds to cover the rest of the loan, and will take out a mortgage per the agreement with Rural Development on the $2.99 million.