Mayo Clinic mulls issuing $750 million in bonds to help pay for construction – Post Bulletin
ROCHESTER —
is considering issuing $750 million in bonds to help pay for construction projects.
Mayo Clinic posted a notice on the
Electronic Municipal Market Access website
on Thursday about the possibility. EMMA is designated by the U. S. Securities and Exchange Commission as the official source for municipal securities data and disclosure documents. Investors use the site as a primary source of information about the bond market.
“Notice is hereby given that Mayo Clinic is considering issuing, either directly or through one or more conduit issuers (an ‘Issuer’), one or more series of bonds in the approximate amount of $750,000,000,” wrote Mayo Clinic officials in the letter titled, “Notice of Potential Bond Issuance.”
If Mayo Clinic decides to issue the bonds, the notice stated that the money raised from the sale of the bonds would be used “to pay costs of construction, improvement, and equipping of certain health care facilities of Mayo Clinic located in the City of Rochester, Minnesota, including costs of issuing the Bonds.”
The letter did not specify if the money would be used to help pay for the massive $5 billion
“Bold. Forward. Unbound. in Rochester”
construction initiative.
The notice estimated that if Mayo Clinic decides to move forward with this, the bond will be priced in early 2026. BofA Securities, Inc., will act as senior manager for the proposed bond issue. Barclays Capital and JPMorgan Securities LLC are expected to act as co-managing underwriters.
Mayo Clinic, which has AA ratings from Moody’s Investor Service and S&P Global Ratings, regularly issues taxable bonds and tax-exempt bonds to finance major projects and to pay off previous bond sales. Sometimes the City of Rochester issues tax-exempt municipal bonds on behalf of Mayo Clinic.
In 2025,
the Rochester City Council approved the issuance of up to $500 million
in health care facilities revenue bonds as a conduit for Mayo Clinic, which are issued by the city on behalf of a health care provider. On April 17, 2025, Mayo Clinic issued $400 million in bonds, according to its unaudited financial statements.
The city has assisted Mayo Clinic with similar conduit financing at least 12 times since 2000 in amounts ranging from $50 million to $288 million, for a total of approximately $2.5 billion, according to a report prepared by Rochester Finance Director Brian Anderson in 2025.
Other major bond issues by Mayo Clinic include
, $500 million in 2021, $200 million in 2018 and
.
Post Bulletin illustration
