A refinancing of the senior debt of the Acute Care Wing public-private partnership has taken place.

According to a press release from Bermuda Hospitals Board and Paget Health Services, the move will see BHB’s annual service payments reduced by $527,250 per year for the 29 remaining years on the contract.

BHB chief executive Venetta Symonds stated: “PHS’s financing solution encouraged PHS to refinance its debt in the first 20 years of the concession.

“Our contract with PHS ensured that BHB would benefit from such a refinancing. The early timing of the refinancing benefits BHB as we continue to work hard to control costs while focusing resources on delivering quality care.

“The reduction of $527,250 in our annual service payments for the next 29 years helps us support our services in these challenging times.”

PHS director Robert Wotherspoon stated: “We were very pleased to complete the important refinancing of senior debt related to the Acute Care Wing, which showed both PHS and BHB working together in partnership.

“This refinancing allows both BHB and PHS to benefit from improved financing terms and does not preclude future refinancing opportunities should the conditions again prove to be favourable.

“In keeping with the project agreement, BHB will benefit from an equal share of any future refinancing activity.”