NEW YORK — H2C Securities Inc. (“H2C”), a healthcare-focused strategic advisory and investment banking firm, served as exclusive financial advisor to Baptist Health, Louisville, KY ("Baptist" or the “System”), on its $200 million line of credit and up to $200 million taxable self-liquidity commercial paper program.

Baptist Health’s objective was to secure access to short-term capital for daily operational needs and general corporate purposes including capital expenditures. H2C developed a variety of options that would allow Baptist Health to manage its cash and provide additional flexibility to support its short-term liquidity and working capital needs.  Baptist preferred short-term debt options – a line of credit and commercial paper – that could be executed quickly and would give the System the option to compare interest costs and utilize the most attractive source of capital in a volatile market. H2C recommended that Baptist secure the line of credit prior to the issuance of the commercial paper program to help support its liquidity position and to provide additional flexibility to fund working capital needs and serve as bridge financing for long-term capital projects.

H2C managed a competitive RFP process for a credit provider as well as dealers for the taxable commercial paper program. H2C negotiated and closed the line of credit transaction in a month. H2C also structured, coordinated, and helped Baptist put in place procedures to manage its first commercial paper program.

On January 31, Baptist Health entered into a 364-day $200 million line of credit with favorable pricing and terms. On April 5, Baptist Health drew $50 million of its $200 million commercial paper program using staggered maturities. H2C assisted Baptist Health in preparing a presentation to the rating agencies and navigating the rating process to secure short-term ratings of P-1 from Moody’s and F1+ from Fitch, while maintaining the System’s long-term rating of A1/A+ from Moody’s and Fitch, respectively. “Baptist’s credit rating was important to accessing commercial paper through self-liquidity and obtaining a line of credit at favorable pricing. H2C was pleased to help Baptist execute on a plan of finance that resulted in access to diversified short-term capital at a low cost, meeting the financial goals of our client.” said Catherine Gao, Vice President.