By John Flood

The El Camino Hospital Board of Directors met Oct. 3 to review financing options for the $250 million in revenue bonds needed to complete its new $480 million earthquake-safe hospital.

Executives from Citigroup Inc., the hospital’s bond underwriter, presented bond scenarios to the hospital board, including the advantages and disadvantages of fixed-rate bonds, variable rate bonds and bond insurance.

“Because the hospital has such strong credit, it has several financing options that give us the advantage to significantly lower our costs through lower interest rates,” said Marla Gularte, chief financial officer of the hospital.

The $250 million in revenue bonds will be issued in two phases: $120 million in 2006 and $130 million in late 2007 or early 2008.

In November or December, the board will make a decision on the financing options, Gularte said.

The board will meet Oct. 11 to approve the issuance and sale of $148 million in general-obligation bonds.

“We try to provide … a significant amount of detail on this issue for the public. It’s a sincere attempt to provide unprecedented transparency on this topic,”

said Jon Friedenberg, vice president of strategy and external relations for the hospital.

In addition to the revenue bonds, the financing plan features a combination of sources, including the hospital’s cash reserves, a capital fundraising campaign and $148 million in general-obligation bonds approved by voters under Measure D.