HMC has been ahead of the curve in implementing population health management and innovative new reimbursement programs with payors which is a great example of how strong community hospitals can thrive in the face of healthcare reform...
Chicago, IL (PRWEB) January 22, 2015
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $42,735,000 tax-exempt, fixed-rate Hunterdon Medical Center Series 2014A Bonds issued through the New Jersey Health Care Facilities Financing Authority. Hunterdon Medical Center (HMC), a new client to Ziegler, is a community teaching hospital located in Raritan Township, adjacent to the Borough of Flemington, the county seat, which is in the central part of Hunterdon County, New Jersey. HMC is currently licensed for and maintains 178 inpatient beds and is the only acute care hospital located in Hunterdon County.
Ziegler served as lead manager for the issue. The Series 2014A Bonds were rated “A” by Fitch and “A-“ by Standard & Poor’s. Proceeds of the sale of the Series 2014A Bonds were used to current refund privately placed Series 2014, advance refund Series 2006A and finance capital projects and improvements throughout the Medical Center. In addition to achieving interest rate savings, the refinancing reduced interest rate risk in the Medical Center’s capital structure, better aligned its long-term debt with the useful life of the assets financed, and in conjunction with additional privately placed debt which refunded the remainder of the Medical Center’s public debt, enabled HMC to modernize its Master Trust Indenture.
Negotiations with investors led to an attractive covenant package with no debt service reserve fund or mortgage. The transaction was well received by the market during a week of very high bond volume and once the order period began the issue was met with strong investor demand. As a result of the strong demand, Ziegler was able to reduce the yields across the entire structure. Twenty-five different institutional investors participated in the transaction, consisting of a combination of traditional buy and hold mutual funds and a large group of trading accounts.
"HMC has been ahead of the curve in implementing population health management and innovative new reimbursement programs with payors which is a great example of how strong community hospitals can thrive in the face of healthcare reform. The results of this financing clearly demonstrate that investors recognized the long-term strength and sustainability of HMC’s business model,” commented Chuck Stafford, Director in Ziegler’s healthcare finance practice.
Ziegler is the premier investment bank to community and regional healthcare providers. For over 80 years, we have been assisting these organizations with creative, tailored financial solutions for their capital needs. Specializing in healthcare, Ziegler offers an array of services including investment banking, financial risk management, merger and acquisition services, as well as capital and strategic planning.
For more information about Ziegler, please visit us at http://www.Ziegler.com.
The Ziegler Companies, Inc., together with its affiliates (Ziegler), is a privately held, specialty investment bank with unique expertise in complex credit structures and advisory services. Nationally, Ziegler is ranked as one of the leading investment banking firms in its specialty sectors of healthcare, senior living, religion, and education, as well as general municipal and structured finance. Headquartered in Chicago, IL with regional and branch offices throughout the U.S., Ziegler provides its clients with capital raising, corporate finance, FHA/HUD, strategic advisory services and research. Ziegler serves institutional and individual investors through its wealth management and capital markets distribution channels.
Certain comments in this news release represent forward-looking statements made pursuant to the provisions of the Private Securities Litigation Reform Act of 1995. This client’s experience may not be representative of the experience of other clients, nor is it indicative of future performance or success. The forward-looking statements are subject to a number of risks and uncertainties, in particular, the overall financial health of the securities industry, the strength of the healthcare sector of the U.S. economy and the municipal securities marketplace, the ability of the Company to underwrite and distribute securities, the market value of mutual fund portfolios and separate account portfolios advised by the Company, the volume of sales by its retail brokers, the outcome of pending litigation, and the ability to attract and retain qualified employees.
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