News

NEW YORK – Build America Mutual, the U.S. municipal bond insurer, and the Nevada Regional Medical Center (“NRMC”) have entered into a forbearance agreement following multiple covenant defaults on debt sold by the City of Nevada, Missouri on behalf of NRMC. There have been no payment defaults on the bonds.

“Bondholders and the Nevada community have the same goal: A financially stable NRMC that can serve the needs of its community for the long term,” said BAM Healthcare Analyst Rebecca Sullivan. “Having a bond insurer like BAM at the table helps achieve that outcome, by letting investors speak with one voice and helping the hospital access outside experts to assist in the turnaround.”

The agreement will provide NRMC with time and financial flexibility to execute the recommendations in a Strategic, Financial, and Operating Assessment that has been developed by the hospital’s consultant, Chief Restructuring Officer, and staff.

BAM guarantees the scheduled payment of principal and interest on $9.95 million of outstanding hospital revenue bonds.

About Build America Mutual

BAM is a mutual bond insurance company operated for the benefit of its members – the cities, states, and other municipal entities that use BAM’s financial guaranty to lower their cost of borrowing – and BAM is the preferred provider of bond insurance for members of the National League of Cities. As of December 31, 2023, there were more than $100 billion of BAM-insured municipal bonds outstanding for more than 5,300 member-issuers.

For more information, please contact:

Michael Stanton, Head of Corporate Strategy and Communications

212-235-2575; mstanton@buildamerica.com