The Medical Center at Bowling Green leveraged its surging credit profile which includes outstanding profitability and balance sheet growth that has led to two recent rating upgrades and a positive outlook on its ‘A’ rating from S&P...
Chicago, IL (PRWEB) April 21, 2015
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $24,434,000 tax-exempt, private placement The Medical Center at Bowling Green Series 2015 issue through the County of Warren, Kentucky. The Medical Center at Bowling Green (MCBG), a new client to Ziegler, is rated “A” by Standard & Poor’s with a positive outlook.
MCBG is the flagship subsidiary of Commonwealth Health Corporation (CHC) and consists of a 337 bed full service hospital that maintains the leading market position in Bowling Green, Kentucky. The obligated group also includes a 25-bed critical access hospital, The Medical Center at Scottsville, and a 110 bed skilled nursing facility, the Cal Turner Extended Care Pavilion. Non-obligated group affiliates of CHC include Centercare, a 380,000 member commercial and Medicaid preferred provider organization, another critical access hospital, the Medical Center at Franklin, a LTACH and other subsidiaries. In the aggregate, CHC generates approximately $400 million in annual operating revenue.
Ziegler served as placement agent for the Series 2015 private placement that advance refunds MCBG’s Series 2007 Bonds. Unlike typical bank placement transactions, this transaction placed with Capital One Funding, lacked lender increased cost provisions meaning the fixed rate is truly fixed. This matched maturity advance refunding transaction creates approximately $320,000 in annual cash flow savings through the 2031 final maturity and generated superior debt service savings compared to a bond issue.
Ron Sowell, Executive Vice President/Chief Financial Officer of CHC and MCBG stated “the refunding opportunities presented to our organization by Ziegler proved to be very rewarding and were consummated quickly and efficiently by the closing team led by Mike Quinn at Ziegler. We are very appreciate of Ziegler’s work on our behalf and look forward to other opportunities to work with them and our new partners at Capital One Funding as we continue to serve the healthcare needs of residents in South Central Kentucky.”
Mike Quinn, Managing Director in Ziegler’s healthcare finance practice, commented, "The Medical Center at Bowling Green leveraged its surging credit profile which includes outstanding profitability and balance sheet growth that has led to two recent rating upgrades and a positive outlook on its ‘A’ rating from S&P to generate meaningful debt service savings in this innovative transaction placed with Capital One. The Medical Center and Commonwealth Health Corporation demonstrate that regional systems can flourish in the new healthcare operating environment. This unique financing structure combined the ease of execution of a direct placement with the more conservative risk profile of public fixed-rate bonds. Ziegler was delighted to assist MCBG and CHC with this important financing.”
Ziegler is a 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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