Hammond Hanlon Camp LLC Advises Marin Healthcare District on $170MM G.O. Bond Financing
posted on December 15, 2015

 

NEW YORK – Hammond Hanlon Camp LLC ("H2C"), a healthcare-focused investment banking firm, served as the exclusive financial advisor to the Marin Healthcare District (“MHD”) in connection with the issuance of MHD’s General Obligation Election of 2013, Series 2015A Bonds.

 

With proceeds from the issuance, MHD plans to construct a four-story, 260,000 square-foot hospital replacement building and a parking structure.  Every aspect of this new, state-of-the-art hospital will meet or exceed the latest state-mandated standards for earthquake safety.  The new facilities will take an estimated three years to complete, while the current hospital continues to operate.  On November 5, 2013, Measure F authorized the issuance of $394 million of general obligation (“G.O.”) bonds to help finance the construction.  The 2015A Bonds represent the first tranche of the authorized G.O. bonds.

 

Retained in the Spring of 2014, H2C developed a Strategic Capital Plan (“Plan”) and assisted management with the development of a long range financial forecast that would guide certain aspects of the Plan.  To develop the Plan, H2C worked with MHD’s management to understand the system’s objectives and concerns, and provided information regarding the capital markets and credit rating trends.  Based on these discussions, H2C developed several recommendations to ensure an optimal funding strategy for MHD’s projects and long-term financial strength.

 

“H2C was an instrumental member of the MHD team throughout the entire process. They helped us develop a sound finance plan and they negotiated tirelessly on our behalf to achieve results beyond our expectations.  Their leadership and experience, particularly their expertise with credit ratings, enabled us to reduce our time to market and conclude a successful transaction,” stated Jim McManus, Chief Financial Officer of MHD.

 

Through a competitive RFP process that included pre-defined, comprehensive terms, H2C assisted MHD in selecting its underwriters based upon the strength of their California and healthcare district financing qualifications and the quality of their plan of finance ideas.  H2C worked with Management and the underwriters to position MHD favorably for its inaugural credit rating.  Based upon the strength of the District and the operations of Marin General Hospital, MHD received a strong rating of Aa2 from Moody’s.  Finally, H2C helped drive the process to market and achieved extremely favorable interest rates.  At a spread to the benchmark interest rate on its final maturity of 90 bps, MHD achieved superior results on its financing.

 

“H2C is extremely pleased to have had the opportunity to assist MHD secure low cost capital for its new projects, while also preserving important operating flexibility in a dynamic healthcare environment,” stated Michael Hammond, Principal at Hammond Hanlon Camp LLC.  Email Michael