Novant Health announced Tuesday that it had refinanced $198 million of debt, which will help the not-for-profit healthcare system as it pays to build new hospitals and convert to electronic medical records.
Novant has refinanced the debt to a 4 percent interest rate. Previously, it was paying 5 to 5.8 percent on the debt, which came from bonds issued in 1996 and 1998. The average remaining life of the bonds is 10 years. Novant says it will save about $17 million with the lower interest rates.
Dean Swindle, the chief financial officer, said that Novant plans to invest $1.6 billion in facilities – including three new hospitals - and medical technologies over the next five years.
Novant Health includes several hospitals in the Charlotte area, such as Presbyterian Hospital, Presbyterian Orthopaedic Hospital, Presbyterian Hospital Huntersville and Presbyterian Hospital Matthews.