Hammond Hanlon Camp LLC Advises Eisenhower Medical Center on Refunding Transaction
posted on September 14, 2016
NEW YORK — Hammond Hanlon Camp LLC (“H2C”), a healthcare-focused investment banking firm, served as the exclusive financial advisor and placement agent to Eisenhower Medical Center (“EMC”), based in Rancho Mirage, California, for its Series 2016A fixed rate direct placement bonds.
Proceeds of the Series 2016A Bonds were used to refund EMC’s Series 1997B Bonds. EMC began evaluating a refunding of the Series 1997B Bonds in Spring of 2016 in order to take advantage of current interest rates as well as eliminate financial covenants from the 1997B insurer. If EMC did not meet the insurer’s financial covenants, EMC would have been required to fund a debt service reserve fund on all outstanding indebtedness, an estimated reserve fund requirement of $27 million.
H2C was retained by EMC to assist in evaluating and structuring the terms of a proposal to refinance the Series 1997B Bonds. Once EMC elected to complete the refunding of the Series 1997B Bonds, H2C developed and executed a financing plan, and negotiated the legal and financial terms of the transaction.
After completing the refunding, EMC was able to complete a desired restructuring of EMC’s Obligated Group structure. EMC will also have interest expense savings of approximately $1.6 million over the next six years.
“H2C worked with EMC’s management to evaluate the refinancing options and consideration. After the development of a financing plan, H2C worked diligently to complete the transaction on an expedited timeline in order for EMC to take advantage of historically low interest rates. H2C’s execution of the financing allowed EMC to achieve a strong outcome that provides the organization with increased financial and operational flexibility.” stated Ken Wheat, Chief Financial Officer of Eisenhower Medical Center.
“H2C is extremely pleased to assist EMC with the Series 2016A refunding transaction, which allowed EMC to lower its cost of capital and eliminate unnecessary covenants,” said Elaine Yao, Managing Director at Hammond Hanlon Camp LLC. Email Elaine
ABOUT EISENHOWER MEDICAL CENTER
Dedicated in 1971, Eisenhower Medical Center has locations across the Coachella Valley for convenient, quality health care. The main campus and hospital is located on 130 acres in Rancho Mirage. Eisenhower Medical Center is a dynamic, progressive health care complex comprised of a 463-bed hospital, the Annenberg Center for Health Sciences at Eisenhower, and the Barbara Sinatra Children’s Center at Eisenhower in addition to its outpatient facilities in Palm Springs, Cathedral City, Rancho Mirage and La Quinta. The Betty Ford Center is also located on the Eisenhower campus. Eisenhower not only offers the highest quality health care for residents and visitors, but additionally provides a broad range of educational programs for the public, and for health care professionals.
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 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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"H2C’s execution of the financing allowed EMC to achieve a strong outcome that provides the organization with increased financial and operational flexibility."
- Ken Wheat
Chief Financial Officer