CFNI leveraged its surging credit profile and a historically attractive bond market to generate material debt service savings with the Series 2015 issue. CFNI possesses all of the essential attributes that a regional system requires for success...
Chicago, IL (PRWEB) April 22, 2015
Ziegler, a specialty investment bank, is pleased to announce the successful closing of the $58,560,000 tax-exempt, fixed-rate Community Foundation of Northwest Indiana’s Series 2015 issue through the Indiana Finance Authority. Community Foundation of Northwest Indiana (CFNI), a long-standing Ziegler client, operates three not-for-profit hospitals encompassing over 800 beds and a continuing care retirement community while generating nearly $1 billion in operating revenue.
CFNI is rated “A” by Fitch and “A” by Standard & Poor’s after an upgrade last December. Ziegler served as the sole manager of the Series 2015 Bond issue that advance refunds a portion of CFNI’s Series 2007 Bonds. The final term bond maturing in 2036 carried a coupon of 5.00% and was initially priced to yield 3.60% for a spread to MMD of 95 basis points. The advance refunding transaction, which provides an all-in financing cost of 4.02%, creates over $5.4 million in net present value savings and over $700,000 in annual cash flow savings. Unlike the refunded bonds, the Series 2015 Bonds were issued without a reserve fund facilitating leverage reduction.
CFNI’s Series 2007 issue carried a rating of “BBB-” when originally issued, compared to a current rating of “A” by both S&P and Fitch. CFNI has received upgrades by S&P in three out of the last four years.
Mary Ann Shacklett, Senior Vice President Finance & CFO of CFNI, commented, “The employees of Community Healthcare System (or Community Foundation of Northwest Indiana) have worked hard to achieve high quality measures, along with strengthening financial metrics over many years. Ziegler leveraged these strong attributes into a low overall cost of capital to the healthcare system through their relationships with the investing world. Ziegler has been a great partner in assisting us in being awarded four rating agency upgrades in six years.”
"CFNI leveraged its surging credit profile and a historically attractive bond market to generate material debt service savings with the Series 2015 issue. CFNI possesses all of the essential attributes that a regional system requires for success in the changing healthcare landscape. Ziegler was pleased to assist its longstanding client with this transaction,” commented Mike Quinn, Managing Director in Ziegler’s healthcare finance practice.
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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