The objective of Mercy was to reduce their capital structure risk while simultaneously providing capital to reimburse their cash position and fund future capital projects relating to clinical expansion. We were able to achieve Mercy’s objective by...
Chicago, IL (PRWEB) June 27, 2012
Ziegler, a specialty investment bank, is pleased to announce the successful closing of Mercy Alliance, Inc.’s (Mercy) Series 2012 $169,475,000 tax-exempt, fixed-rate project financing. Mercy, a Ziegler client since 1972, is a Wisconsin not-for-profit corporation that operates an integrated health care system comprised of three hospitals (two of which are critical access hospitals) and over 40 other health service facilities in southern Wisconsin and McHenry County, Illinois. The flagship hospital, Mercy Hospital and Trauma Center, is an acute care hospital located in Janesville, Wisconsin and is approved for 240 beds.
Ziegler served as the lead manager of the tax-exempt fixed-rate Series 2012 Bonds. Proceeds of the sale of the Series 2012 Bonds were used to refinance the outstanding Series 1999 fixed-rate bonds, the Series 2005 and 2009 variable rate demand bonds and fund approximately $52.5 million in new money projects. The Series 2012 restructuring offered Mercy a substantial reduction in capital structure risk with the elimination of interest rate, renewal and bank risk at an all-inclusive interest cost of less than 4.50%.
For over 80 years, Ziegler has been assisting hospitals and healthcare organizations with creative, tailored financial solutions for their capital needs. Ziegler offers its healthcare clientele an array of services including investment banking, financial risk management, merger and acquisition services as well as capital and strategic planning. John Hanley, Managing Director and Head of Healthcare Finance at Ziegler, states, “The objective of Mercy was to reduce their capital structure risk while simultaneously providing capital to reimburse their cash position and fund future capital projects relating to clinical expansion. We were able to achieve Mercy’s objective by restructuring its existing indebtedness and providing for new capital which ultimately had minimal impact to their maximum annual debt service.”
For further information on the structure and use of this issue, please see the Official Statement located on the Electronic Municipal Market Access system's Document Archive.