Highmark to pay off WPAHS debt in $726M bond deal

Pittsburgh Post-Gazette, January 18, 2013

Highmark and West Penn Allegheny Health System officials have reached an agreement with bondholders on a debt-reduction deal. Highmark has offered to purchase $726 million in outstanding series 2007A bonds issued for WPAHS for 87.5 cents on the dollar, resulting in a savings of about $100 million for Highmark. With the deal, officials said West Penn Allegheny will avoid a bankruptcy filing and preserve pensions for the health system's 12,000 employees. The deal means Highmark will be paying off about $635 million of the WPAHS debt.