John Muir Health Completes Issuance of Series 2019A Fixed-Rate, Private-Placement Bonds

posted on Nov. 26, 2019

 

NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, through its wholly-owned subsidiary, H2C Securities Inc. ("H2C"), served as the exclusive financial advisor to John Muir Health (“JMH”), based in Walnut Creek, Calif., in connection with the private placement of JMH’s $45.55 million Series 2019A tax-exempt bonds (“Series 2019A Bonds”).

 

JMH retained H2C in Spring 2019 to evaluate refinancing options for its Series 2012B Bonds, which were a fixed-rate direct placement with a mandatory tender date of Aug. 15, 2019. JMH’s goals were to refinance at an attractive rate and modernize the 2012B multi-modal bond indenture.

 

H2C ran the RFP process, reaching out to 28 banks and investment companies, which proposed a variety of tax-exempt, taxable, fixed-rate, and variable-rate refinancing options. After evaluating the proposals, H2C recommended that JMH refund its Series 2012B Bonds with a five-year put bond placed directly with an institutional investor. The Series 2019A Bonds priced attractively and have a 4.0 percent coupon and an all-in-TIC of 1.49 percent.

 

H2C worked with JMH to complete the transaction quickly, enabling the health system to take advantage of low interest rates. The Series 2019A Bonds had a very competitive spread and no additional covenants or requirements from JMH. At the time of pricing, five-year MMD was only 2 bps above the 2019 low. H2C also worked with bond counsel to improve the multi-modal bond indenture, including adding modes and indices and providing more flexibility within the mechanics of mode conversion.

 

“H2C coordinated a competitive process, reaching out to a wide range of investors and achieving attractive yields for John Muir Health,” said Chris Pass, CFO for JMH.  

 

“We have been seeing strong proposals from banks and investors for tax-exempt financings. We were honored to serve on this financing for John Muir Health,” said Elaine Yao, Managing Director for H2C. Email Elaine.