April 21, 2016
WHEFA Bond Financing Helps Milwaukee Regional Medical Center Thermal Service, Inc. Begin Operations in Wauwatosa
“Access to lower cost tax-exempt financing through WHEFA allowed Thermal to acquire the Milwaukee County Power Plant and will allow Thermal to make improvements to the facilities, equipment and distribution system. These improvements will modernize the 60 year old plant, reduce emissions, improve reliability and create capacity for future growth while minimizing utility cost increases to the healthcare facilities served by it.”
– Robert W. Mlynarek, Vice President of Finance
Milwaukee Regional Medical Center
Bond financing facilitated by WHEFA will be used to help Milwaukee Regional Medical Center Thermal Service, Inc. (“Thermal”) finance the acquisition of an existing steam and chilled water facility and distribution system that provides heating and cooling services to the Milwaukee Regional Medical Center campus. The project also includes the replacement of coal fired boilers with gas fired boilers which will improve the environmental impact of the power plant by dramatically reducing noxious emissions. Improvements to the power plant and distribution system will also be made resulting in increased efficiency, lower operating costs and greater reliability of these utility services to the critical health care facilities it serves. This federally tax exempt financing process has enabled the borrower to operate more effectively by financing its capital expenses at a lower interest rate (initially 1.26%).
Thermal, created in 2013, is operated, supervised, and controlled by the Milwaukee Regional Medical Center, Inc. with the purpose of providing steam and chilled water to a consortium of six health care institutions located on a 248-acre campus in Wauwatosa, Wisconsin.
WHEFA is proud to have been able to assist Thermal by reducing their overall debt service and allowing them to grow by providing access to low cost private capital.