CHARLESTON, W.Va. - CAMC closed on a $20 million loan Tuesday for unspecified purposes, officials announced in Wednesday's Board of Trustees meeting.
Larry Hudson, CAMC chief financial officer, said the loan is a continuation -- or part two -- of the $60 million loan package taken out a few months ago for the new cancer center.
"There is no specified purpose for the cash at this time. We'll be holding it in escrow basically for our future uses," Hudson said.
The loan, through Huntington Bank, offered a "very attractive 4.05 percent rate," said Mark Chandler, chairman of the finance committee.
"The thought was that the money is available now," he said. "Who knows if it'll be available in the future at that attractive rate. So we wanted to go ahead and nail that money down until we need it somewhere."
Hudson said loans are an infrequent event for hospitals, especially at CAMC.
"We have a loan maybe every three or four years. The $60 million loan is used primarily to pay for the cancer center, expansion of ambulatory surgery center here at the General campus and also for in-patient bed expansion at Memorial."
The $20 million is available to CAMC now, and the board approved opening an account at Huntington Bank.