Hammond Hanlon Camp LLC Advises Marin Healthcare District on $224 Million Series 2017A General Obligation Bond Financing
posted on August 1, 2018
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, through its wholly-owned subsidiary H2C Securities Inc. ("H2C"), served as the exclusive financial advisor to the Marin Healthcare District (“MHD”) in connection with the issuance of MHD’s $224 million General Obligation Election of 2013, Series 2017A Bonds.
On Nov. 5, 2013, Marin County authorized the issuance of $394 million of general obligation (“G.O.”) bonds, across two tranches, to help finance the construction of a replacement hospital. The $224 million 2017A bonds represent the second and final tranche of the authorized G.O. bonds, following the $170 million 2015A bonds issued in November 2015.
The proceeds of the issuances will help fund the construction of a four-story, 260,000-square-foot replacement hospital and parking structure (the “Project”). The Project is estimated to cost $535 million, financed with a combination of debt, cash on the balance sheet, and philanthropy. The new facilities are projected to open in 2020.
H2C was retained by MHD in 2014 to develop a Strategic Capital Plan (“Plan”), a long-range financial forecast, and a multiyear plan of finance. The Plan was designed to establish guidelines for capitalizing the Project so that MHD would have clear financial targets during the period leading up to and after construction of the Project.
“H2C has been an instrumental member of the MHD financing team throughout the entire process. They helped us develop and execute upon a sound plan of finance that achieved results beyond our expectations," said Jim McManus, CFO for MHD. "H2C's leadership, experience, and guidance enabled us to go to market in a timely manner and conclude a successful transaction."
H2C worked with MHD’s management team and bond underwriters to create a presentation that articulated MHD’s credit strengths with both rating agencies and investors, achieving an “Aa2” rating from Moody’s and a “AAA” rating from Fitch. Additionally, H2C advised MHD on optimal market timing, recommending MHD accelerate the pricing date to enter the market under favorable conditions. Ultimately, MHD’s negotiated bond offering achieved better pricing than several comparable, competitively priced California school district G.O. bonds as well as a recent State of California G.O. bond offering.
“H2C is extremely pleased to have had the opportunity to assist MHD in securing attractively priced, long-term capital to fund the replacement hospital project," said Michael Hammond, Principal for H2C. "The new hospital will benefit the patients of Marin County for generations." Email Michael
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ABOUT MARIN HEALTHCARE DISTRICT
Marin Healthcare District ("MHD") was established in 1946 as a publicly elected non-profit entity. MHD is responsible for promoting the health and welfare of the residents of Marin County. It provides countywide access to care through Marin General Hospital and nine Marin Healthcare District Medical Care Centers. MHD is located 15 miles north of San Francisco and encompasses all of Marin County, with the exception of Novato and portions of West Marin.
ABOUT HAMMOND HANLON CAMP LLC
Hammond Hanlon Camp LLC (“H2C”) is an independent strategic advisory and investment banking firm committed to providing superior advice as a trusted advisor to healthcare organizations and related companies throughout the United States. H2C’s professionals have a long track record of success in healthcare mergers and acquisitions, capital markets, real estate and restructuring transactions, acting as lead advisors on hundreds of transactions representing billions of dollars in value. Hammond Hanlon Camp LLC offers securities through its wholly-owned subsidiary H2C Securities Inc., member FINRA/SIPC. For more information, visit h2c.com.
Kelly T. Duong
Hammond Hanlon Camp LLC
“H2C has been an instrumental member of the MHD financing team throughout the entire process. They helped us develop and execute upon a sound plan of finance that achieved results beyond our expectations. H2C's leadership, experience, and guidance enabled us to go to market in a timely manner and conclude a successful transaction."
- Jim McManus,
CFO of MHD