McLEANSBORO — Hamilton Memorial Hospital District's board of directors moved forward Tuesday on a proposal to refinance its 2007 financing agreement for the hospital expansion and renovation.
First Midwest Bank, of the Chicago area, has made a proposal to refinance the hospital district's original loan. The hospital district currently needs to refinance about $20 million.
Sovereign Bank, the principle lender on the original loan, notified Hamilton Memorial in 2011 that it would not extend its letter of credit beyond the original five-year agreement, though it did grant a one-year extension last fall. That extension expires Nov. 1.
Hamilton Memorial's board approved a motion Tuesday to make application for the loan, which calls for a $10,000 deposit from the hospital district, after accepting a term sheet from First Midwest.
First Midwest is offering both variable- and fixed-rate terms, but the board has not yet decided on those terms.