John Muir Health Completes Issuance of Series 2019A Fixed-Rate, Private-Placement Bonds
posted on Nov. 7, 2019
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused strategic advisory and investment banking firm, 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 a competitive 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 coordinated the entire process, allowing John Muir to complete the transaction quickly and 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.
“Our efforts in running a competitive process, reaching out to a wide range of investors, achieved attractive yields for John Muir Health,” said Elaine Yao, Managing Director for H2C. “H2C is extremely pleased to have assisted JMH with the Series 2019A transaction.”
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ABOUT JOHN MUIR HEALTH
John Muir Health is a nationally recognized, not-for-profit healthcare organization east of San Francisco, serving patients in Contra Costa, Alameda, and southern Solano counties. It includes a network of more than 1,000 primary care and specialty physicians; more than 6,000 employees; medical centers in Concord and Walnut Creek, including Contra Costa County’s only trauma center; and a behavioral health center. John Muir Health also holds partnerships with UCSF Health, Tenet Healthcare/San Ramon Regional Medical Center, and Stanford Children's Health. The health system offers a full-range of medical services, including primary care, outpatient, and imaging services, and is widely recognized as a leader in many specialties: neurosciences, orthopedic, cancer, gynecologic surgery, cardiovascular, trauma, emergency, pediatrics, and high-risk obstetrics care. For more information, visit johnmuirhealth.com.
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.
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