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Hammond Hanlon Camp LLC Advises Texas Health Resources on $764.6 Million in Bond Financings, Completes Multi-Year Plan of Finance  
posted on March 13, 2018

New York — Hammond Hanlon Camp LLC, through its wholly-owned subsidiary H2C Securities Inc. ("H2C"), served as the exclusive financial advisor to Texas Health Resources (“THR” or the “System”) in connection with the issuance of $764,575,000 in tax-exempt bonds, comprised of $631,105,000 System Revenue Bonds Series 2016A Bonds, $133,470,000 System Revenue Bonds Series 2017A&B, and a partial cash defeasance of its 2008AB&C Bonds.


THR’s objective was to restructure its fixed rate 2007A&B Bonds for savings and to fund strategic initiatives.  The Series 2016A Bonds represented Phase One of the Plan of Finance.  H2C evaluated various financing alternatives to identify the lowest cost of capital, optimal debt mix and most favorable long-term debt service schedule for the System.   Refunding the Series 2007A Bonds generated present value ("PV") savings of 19.0% of the refunded par and $241.0 million of cash flow savings in the first ten years through a restructuring of principal payments. 


The 2017A and 2017B bond issues represented Phase Two of the Plan of Finance, comprised of both new money and a current refunding of the 2007B Bonds.  The financing achieved significant PV savings based on market variable rates and improved THR’s debt mix to 73.0% fixed / 27.0% variable rate. Given THR’s strong credit rating (Aa2/AA), management opted to convert the System’s $100.0 million of fixed rate 2007B Bonds into variable rate debt using variable rate demand bonds (“VRDBs”) supported by self-liquidity.  In addition to the refunding bonds, H2C recommended that THR take advantage of the attractive interest rate environment to issue an incremental $30.0 million of VRDBs to fund strategic projects.  Finally, the $27.0 million cash defeasance of the 2032 maturity of the 2008 Bonds allowed THR to increase its already strong maximum annual debt service coverage ratio from 5.3x to 6.5x.


“H2C worked with THR to evaluate a full range of financing alternatives for both phases of our Plan of Finance. After the development of the Plan, H2C led the execution of the transactions that allowed THR to achieve an exceptional outcome that provides the organization with a lower cost of capital, and increased financial and operational flexibility,” stated Robert Jones, Chief Investment Officer and Senior Vice President of Treasury Services.


“The most recent financing concludes a multi-year Plan of Finance H2C developed for THR’s capital structure.  THR’s low cost of debt and optimal debt structure helps to support its patient care activities, and we are proud to be able to serve as their financial advisor,” said Elaine Yao, Managing Director at Hammond Hanlon Camp LLC.​  Email Elaine


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Texas Health Resources is one of the largest faith-based, nonprofit health systems in the United States. The health system, which along with UT Southwestern founded Southwestern Health Resources in 2016 to make it easier for North Texans to access the highest quality care consistently in a responsive and coordinated manner, includes 29 hospital locations that are owned, operated, joint-ventured or affiliated with Texas Health Resources. It includes Texas Health Presbyterian Dallas, Texas Health Arlington Memorial, Texas Health Harris Methodist and Texas Health Huguley Hospitals, Texas Health Physicians Group, outpatient facilities, behavioral health and home health, preventive and fitness services, and an organization for medical research and education. For more information about Texas Health Resources, call 1-877-THR-WELL, or visit



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



Kelly T. Duong
Hammond Hanlon Camp LLC


"H2C led the execution of the transactions that allowed THR to achieve an exceptional outcome that provides the organization with a lower cost of capital, and increased financial and operational flexibility."  


- Robert Jones
  Chief Investment Officer
  & SVP of Treasury Services,

  Texas Health Resources

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